Prime Minister George Papandreou, President Karolos Papoulias and New Democracy leader Antonis Samaras at the November 7 meeting (Eurokinissi)

Prime Minister Andeas Papandreou and the New Democracy leader Antonis Samaras are expected to agree today on who will become the country's next prime minister.

 

 

The deal on a crisis coalition to approve an international bailout was sealed between the Pasok and New Democracy leaders at a meeting last night brokered by President Karolos Papoulias.

 

Yet details remain thin despite an EU ultimatum for the Athens to get serious about tackling its huge problems.

 

The European Union told bickering political parties to explain by Monday evening how they would form a unity government to get the 130bn euro emergency funding.

 

On Monday Papandreou and Samaras spoke over the phone on Monday and will hold further conversations later in the day, a government official said.

 

 

Papandreou's side trumpeted the agreement, reached late on Sunday at talks led by President Karolos Papoulias. "Today was a historic day for Greece," government spokesman Elias Mossialos said, adding that the new coalition would be sworn in and hold a confidence vote within a week, if all went to plan.

 

"Finally!" the centre-left daily Ta Nea said on its front page on Monday. "The first, big step has been taken to save the country." Conservative daily Kathimerini wrote: "A first win." (Click here for today's Press Watch.)

 

Others were less charitable. "I'm afraid the new government will very soon turn out to be problematic," said Stefanos Manos, a former New Democracy finance minister.

 

On the streets of Athens, many citizens, who have suffered pay and pension cuts and massive job losses in the past two years, remained sceptical.

 

"Are we saved? I don't think so if nothing is done to stop this practice of slapping more and more taxes because people's pockets will be empty," said Nikos Stratakis, 49, a taxi driver.

 

"Hurrah, we are saved!" George Vihos, a plumber, said sarcastically. "Weren't we the ones who did not want these austerity measures? Why should we celebrate now that they will make sure we bear the pain."

 

 

The new coalition must win parliamentary approval for the bailout before calling early elections.

 

Pasok and New Democracy agreed in the early hours of Monday that the most suitable date for the elections would be 19 February 2012.

 

In the meantime, the pressure on Greece to push through economic reforms is mounting.

 

"The Greeks have a choice: reforms within the euro zone or no reforms and leave. There is no third way," Germany's economy minister Philipp Roesler, told the mass-circulation daily Bild on Sunday. Asked if he thought the Greeks were "ungrateful", Roesler replied: "The Greek government must at least understand that at some point our patience will end."

 

Ahead of a meeting of Eurozone finance ministers in Brussels later on Monday, European Union officials have also piled pressure on Athens to approve the bailout, a last financial lifeline for Greece, fearing that its crisis will spill into much bigger eurozone economies such as Italy and Spain – which would be far harder to rescue.

 

Papandreou had sought the referendum to show that harsh cuts demanded in the bailout had public support, but the risk that a "no" vote could bring about a sudden bankruptcy caused mayhem in markets and unrest in the ruling party.

 

He soon ditched the idea and won a confidence vote in parliament, but only after promising to make way for the national unity coalition.

 

 

The coalition deal is unlikely to calm Greek politics.

 

Whoever becomes prime minister will struggle to exert their authority as the party leaders run things behind the scenes, Manos told Reuters. "The civil service won't implement any decision and everyone will be waiting for the election."

 

Papandreou and Samaras – who were once college roommates in the United States – had to bury their deep differences and personal animosity, as Greece is deep in economic, political and social crisis, its future in the eurozone is in question, and their reputations among ordinary Greeks are at rock bottom.

 

"The two leaders had no other choice. If elections were held now, nobody would turn out to vote for them," said Elias Nikolakopoulos, political science professor at Athens University.

 

But a meeting planned today between President Papoulias and smaller opposition groups was called off after the heads of the Communist Party of Greece (KKE), and Radical Left Coalition (Syriza) said they would not join the new interim government.

 

The country's small rightist and liberal parties expressed their support for the new coalition, although it is unlikely that they will be offer cabinet seats. (Reuters, Athens News)