Former ECB vice president in Greek power-sharing talks

Nov 10, 2011, 10:12 GMT

Athens - Lucas Papademos was taking part in power-sharing talks with Greece's politicians on Thursday, a development that suggests the former European Central Bank vice president is close to being named as the country's new prime minister.

Papademos would head a new national unity government, which is to have a caretaker role until elections are held on February 19.

He joined the power-sharing talks two hours after the meeting started between Greek President Karolos Papoulias and Prime Minister George Papandreou; the main opposition conservatives led by Antonis Samaras; and the leader of the right-wing LAOS party, Giorgos Karatzaferis.

Papandreou has said he will quit when a new coalition government is announced.

Greece is under increasing international pressure to finally appoint a new prime minister after days of inconclusive talks.

The new government would aim to secure a new 130-billion-euro (175.6-billion-dollar) European debt deal and ensure that Greece receives the next instalment of its emergency bailout.

Athens could be forced into bankruptcy before the end of the year without the approval of the deal and the prompt release of an 8-billion-euro loan instalment.

The crisis turned political last week after Papandreou said he would put the new European rescue package to a referendum, causing markets to tumble around the world and angering European leaders. He later withdrew his referendum proposal.