Greek PM Papandreou proposes unity coalition - state TV

Crise de l'euro



Greek PM George Papandreou has proposed a unity government as he tries to win support for austerity measures demanded by the EU and IMF, state TV reports.
Some reports said Mr Papandreou had even offered to step down, in talks with opposition leader Antonis Samaras.
Mr Papandreou has been facing the risk of a revolt in his Socialist party over the controversial austerity package.

Greek police clashed with anti-austerity protesters near parliament, and unions held a general strike.
Greece crisis
_ EU 'has profound Greece concerns'
_ Hewitt: Greek humiliation
_ Paul Mason: Government losing grip
_ Can a solution be found?

Mr Papandreou is seeking support to push through a new austerity programme of 28bn euros (£24.6bn; $40.5bn) in cuts to take effect from 2012 to 2015.
The government is trying to pass the measures by the end of the month.
The EU and IMF are demanding the measures in return for the release of another 12bn euros in aid that Athens needs to pay off maturing debt.
The conservative New Democracy party reportedly demanded that as a condition of agreeing to a unity government, Mr Papandreou should resign and the terms of the austerity package should be renegotiated.

“Start Quote
Mr Papandreou says: 'We are in the middle of an ongoing battle. We will not surrender.' But increasingly the people are not with him.”
Gavin Hewitt BBC Europe editor
The humiliation of Greece

EU commissioners were said to have a "profound sense of foreboding" about Greece and the future of the eurozone, according to leaked account of a meeting on Wednesday seen by the BBC.
'Crucial moment'
On Tuesday, one member of parliament defected from Mr Papandreou's socialist Pasok party, leaving it with only 155 of the chamber's 300 seats.
At least one other Pasok deputy has threatened to vote against the new programme of cuts and privatisation of state assets, and a number of others are said to be wavering.

Greek bail-out timeline
_ May 2010: EU and IMF agree bail-out package to prevent Greece defaulting on its debts; in return, Greece agrees to make 30bn euros of budget cuts over the next three years
_ February 2011: EU and IMF experts tell Greece it must make further cuts to keep its recovery on track
_ April 2011: EU figures reveal Greek deficit revised up to 10.5%, worse than previously thought
_ May 2011: Greece begins privatisation programme but is warned the IMF may not release more funds because Athens cannot guarantee it will remain solvent for the next 12 months
_ 29 June 2011: Deadline for Greece to agree new austerity package

Mr Papandreou also held talks on Wednesday with Greek President Karolos Papoulias, telling him that "a national effort" was required to push the austerity measures through.
"We are at a historically crucial moment and a time of crucial decisions," Mr Papandreou said, according to a transcript released by his office.
"In any case, we will move forward with this sense of responsibility and the necessary decisions."
Earlier, thousands of activists and unionists gathered in Syntagma square in Athens, near parliament.
Police estimated the size of the crowd at between 20,000 and 30,000, while local media reports put the number higher.
Some protesters tried to prevent Greek deputies from entering the parliament building to hold a debate on the austerity measures.
Police responded with tear gas, fighting running battles with demonstrators in the surrounding streets.
The general strike was the third in Greece this year.
Ports, public transport and banks were badly disrupted by the strike, while hospitals offered only emergency care.
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