Papandreou win sets up unity government

GREEK VOTE: ATHENS WAS again the scene of intense political bargaining and behind-the-scenes negotiations yesterday as MPs from…

GREEK VOTE:ATHENS WAS again the scene of intense political bargaining and behind-the-scenes negotiations yesterday as MPs from the ruling socialist Pasok party agonised over how to trigger the creation of a transitional interparty administration without humiliating their leader, Greek prime minister George Papandreou.

Despite Mr Papandreou’s 153-145 victory in a no confidence vote at 1am today Greek time, the day’s developments made it clear that his government, which came to power two years ago in a landslide victory, was not going to serve a full term.

The fallout from Thursday’s dizzying political acrobatics, which saw Mr Papandreou forced to backtrack on his controversial plans to hold a referendum on the Brussels debt deal agreed at a euro-zone summit on October 27th, meant that for a significant number of Pasok ministers and deputies, Mr Papandreou’s position as prime minister and party leader was no longer tenable.

During the day, it became clear that the prime minister was being presented with a stark choice by his MPs: either to be taken down by his own party – a process that would render Pasok asunder and lead to elections within weeks – or to agree to immediately begin talks on the formation of a national unity government after the confidence vote.

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Even though his party had a paper-thin majority, at no stage yesterday was it certain that Mr Papandreou would secure the support of all his 152 MPs.

By early afternoon, spokesmen from Pasok and the main opposition New Democracy reiterated their parties’ positions on what would follow the confidence vote.

While both sides made it clear that the confidence motion would be followed by the creation of a new administration, there were strong differences about the composition of the cabinet, what its duties would be and how long it would exercise power before fresh elections are held.

The Pasok line, spelled out by parliamentary party spokesman Christos Protopappas, was that the confidence vote should be followed by the creation of an interparty government with elections deferred until early next year.

“We need three or four months . . . to rationalise the situation, restore calm to the country, get rid of that €100 billion in debt and build international credibility,” Mr Protopappas told state radio.

New Democracy’s road map was the same as the one set down by party leader Antonis Samaras on Thursday: he demanded that the prime minister step down, after which a transitional government would be formed consisting solely of unelected technocrats appointed by the president.

The sole responsibility of this caretaker government would be the ratification of the Brussels haircut and bailout deal struck at the October 27th euro-zone summit. “Immediately afterwards we must go to elections,” New Democracy spokesman Yiannis Michelakis said.

By late evening, an increasing number of Pasok MPs seemed to have been won over by the argument that voting for the embattled prime minister was the lesser of two evils.

“The referendum is off the table. The facts have changed,” said MP Eva Kaili, who had previously said she would not be voting for Mr Papandreou.

Speaking on state television last night, she said her vote would depend on whether Mr Papandreou, in his speech to parliament before the vote, could convince her that a credible plan was in place to lead to the creation of a government of national salvation.