Greek PM to resign once interim government formed

Greek Prime Minister George Papandreou will not lead a new interim government once it is formed, the country's president announced Sunday night, as talks continued into what the newadministration will look like.

Papandreou met with President Karolos Papoulias on Sunday afternoon in Athens afterholding an emergency cabinet meeting inside the Greek parliament.Initial unconfirmed reportssaid thathemightresign by the end of the day to pave the way for a coalition government that would work to secure a second European financial bailout.

But no agreement could be reached Sunday, and talks over the contours of a new government were to continue Monday.

A senior member of the governing Socialist partysaid Papandreou will resign once a coalition deal is done. But such a dealis proving difficult because Antonis Samaras, leader of theNew Democracy opposition party,has not beenco-operating and is instead demanding immediate elections.

Making matters more acute, eurozone finance ministers are due to meet on Monday to discuss the Greek situation."Everything must be done within the day," senior Socialist legislatorTelemachos Hitiris told Greek state television on Sunday,"otherwise tomorrow it will be hell."

In the cross-party talks to form a national unity government,Papandreou has said he wants to form a temporary coalition governmentto pass measures demanded in theEuropean financialbailout, and then call elections.

Opposition leaderSamaras, on the other hand,repeated his position Sunday thatif the prime minister resigns now, "everything will be on course."

Papandreou says his plan isa necessary step if the country is to securebillions of dollars in international rescue funds to stem Greece's growing debt crisis. The prime minister barelywon a confidence votein parliament Friday night on a pledge that he was willing to quit and form a caretaker coalition.

Debt-crippled Greece is surviving on a 110 billion ($150 billion) rescue-loan program from eurozone partners and the International Monetary Fund. It wants to secure an additional 130 billion ($179 billion) in loans.

Public opinion pollspublishedintwo leading Greek newspapers show that the majority of citizens in the countrywould be more in favour of a unity government than snap elections.

One poll commissioned by Proto Thema newspaper showed 52 per cent of respondentsare in favour of the Papandreou plan,while 36 per cent want snap elections as proposed by the conservative opposition party.

The otherpollcommissioned by Ethnos newspaper shows 45 per cent supportthe prime minister's efforts, while41.7 per cent favour what Samaras has been proposing to end the stalement.