Greek Politicians Squabble While the Ship of State Sinks

blr-editor | November 9, 2011 | Comments (0)

Greek Prime Minister George Papandreou meets Greek President Karolos Papoulias

After being effectively floored by the markets this week, Greece is still in search of a new PM.

George Papandreou was forced to resign after his ill-considered plan – now withdrawn – to take the austerity program to a referendum.

So, have the Greeks found a new leader to steer the country in these trying times? Of course not.

The power-sharing talks between the political parties have hit a roadblock and dissolved in chaos.

CBS reports;

But after a historic deal with conservative opposition leader Antonis Samaras Sunday night to form the transition government, negotiations dragged on, missing self-imposed deadline after deadline. Repeated pledges to announce a new prime minister came to nothing despite intense European pressure to quickly resolve the crisis.
A final decision had been all but certain Wednesday night, with Papandreou delivering a farewell televised speech to the nation in which he wished his successor — although he did not name him.

Three days of meetings and negotiations with the opposition have now failed and a new meeting has been called on Thursday.

In the meantime, the feared contagion has now spread to Italy, whose debt yields have now passed the alrm-ringing 7% – the level at which Ireland, Portugal and Greece needed bailouts.

Despite staring into the abyss, the Greeks are stuck in an impasse. Europe, the EU, and the fate of the Eurozone look bleaker than ever today.