Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


    November 11, 2011

Greece to Swear in New Transitional Government

   VOA News
   Incoming Prime Minister Lucas Papademos stands outside the Presidential
   palace after a meeting with Greek political leaders in Athens November
   10, 2011. Photo: Reuters
   Incoming Prime Minister Lucas Papademos stands outside the Presidential
   palace after a meeting with Greek political leaders in Athens November
   10, 2011. Papademos called on all Greeks to contribute to resolving the
   huge problems faced by a country at a "crucial crossroads".

   Lucas Papademos will be sworn in Friday as the new prime minister of
   Greece, following nearly a week of intense talks over the formation of
   a coalition government that hopes to rescue the country from a deep
   financial crisis.
   Greece's feuding political leaders Thursday named Mr. Papademos, a
   former vice president of the European Central Bank, to be the country's
   interim leader until a national election, provisionally set for
   February, is held.
   The transition government is tasked with implementing deeply unpopular
   budget cuts required by European leaders in order to secure the next
   installment of a rescue package that would keep Greece from going
   bankrupt within weeks.
   Mr. Papademos said Thursday "the course will not be easy," but that
   that Greeks "must all be optimistic about the final result."
   He replaces outgoing Prime Minister George Papandreou, who stepped down
   Sunday midway through his four-year term.
   With Greece's selection of a new leader, attention now turns to Italy,
   the eurozone's third largest economy, which is under intense pressure
   to quickly form an interim government that hopes to implement a
   budget-cutting plan aimed at reducing the country's $2.6-trillion debt.
   Italy's Senate on Friday is beginning debate on a series of tough
   austerity measures demanded by European leaders in order to ensure the
   stability of the euro.
   The head of eurozone crisis fund on Friday urged Italy to act swiftly
   on the measures, saying Italy was "running out of time to calm
   markets." But Klaus Regling also told Germany's Suddeutsche Zeitung
   newspaper that the eurozone bailout fund was ready to intervene and
   help Italy if necessary.
   Both houses of parliament are expected to pass the reforms by this
   weekend, after which Prime Minister Silvio Berlusconi has promised to
   step down.
   Mr. Berlusconi's most likely successor is former European Union
   Commissioner Mario Monti, who was named Wednesday by Italian President
   Giorgio Napolitano as "senator for life," a move widely seen as a
   precursor to Monti being appointed as prime minister.
   But Mr. Napolitano cannot appoint a new prime minister until Mr.
   Berlusconi follows through on his promise to resign, and many investors
   fear that the 75-year-old may once again stubbornly try to stay in
   power.
   Mr. Berlusconi appeared to endorse Monti on Thursday. In a brief
   telegram, Mr. Berlusconi said he wishes Monti "fruitful work in the
   country's interest" and congratulated him on his new post.
   In Washington, the White House said late Thursday that U.S. President
   Barack Obama spoke with the Italian president, saying he was confident
   in Mr. Napolitano's ability to form an interim government that "will
   implement an aggressive reform program and restore market confidence."
   In the meantime, Italy's borrowing costs this week soared above 7
   percent -- higher than the rate that forced Greece, Ireland and
   Portugal to ask for bailout loans.

.