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Crisis in crisis

November 6, 2011

Key meetings are taking place in Greece on how to exit the country's political crisis and address its eurozone obligations. The prime minister favors a unity government, while the opposition wants new elections.

https://p.dw.com/p/135sq
A political solution is needed to prevent a stormImage: Nikos Pilos

Sunday marks a key day in Greek political negotiations aimed at bringing the country back from the brink of bankruptcy and an exit from the eurozone.

Following a meeting between Greek Prime Minister George Papandreou and President Carolos Papoulias on Saturday, where Papandreou made his case for forming a unity government to resolve the country' political crisis, Papoulias is due to meet with opposition leader Antonis Samaras on Sunday.

Papandreou is scheduled to meet with his cabinet later on Sunday as well, with sources within his Pasok party suggesting he could resign by the end of the day.

Samaras has called for immediate elections, which Papandreou has likened to "a disaster."

Deeply divided

Greece's political divide stems from preconditions imposed by the European Union on a second massive bailout package.

George Papandreou and Carolos Papoulias
Papandreou, left, made his case to PapouliasImage: dapd

Like Greece's initial bailout, granted in 2010, the second package, approved by the International Monetary Fund (IMF) and Greece's partners in the eurozone, requires Greece to take on tough austerity measures.

Papandreou has offered to resign his post as prime minister in favor of a new government that can get the austerity measures passed, but Samaras is opting for new elections.

Papandreou sees the matter as more than simply securing the bailout.

"The application of this deal is the precondition for us staying in the eurozone. It's as important as that," he said after meeting with Papoulias on Saturday.

Drachma drama

Meanwhile the Greek public is increasingly aware that the longer it takes to solve the political turmoil, the more patience the international community will lose. One Greek newspaper likened the political arguing to "haggling on board the Titanic."

Sunday's meetings in Greece will likely have a bearing on a meeting of eurozone cabinet ministers on Monday, who will debate whether the conditions are in place for Greece to receive the next instalment of the country's first bailout package. As it stands, Greece's public coffers are expected to run dry in about five weeks.

However, leading eurozone nations France and Germany have made it clear that not a single cent will be distributed unless Greece lives up to its side of the bargain.

Should that happen, it is feared that Greece may be booted out of the eurozone and return to its former currency, the drachma.

Author: Matt Zuvela (Reuters, AFP)
Editor: Andreas Illmer