The PJ Tatler

Greece: Papandreou out; Unity Government In

From the WSJ:

Greece’s major political parties on Sunday agreed to form a national unity government that will lead the country to new elections after putting in place a debt-slashing deal, in the hope of averting financial catastrophe for the country and winning back the trust of its European partners.

The deal was made possible after Prime Minister George Papandreou agreed to step down to make way for a new prime minister under a commonly accepted government.

Late Sunday, Papandreou and Antonis Samaras, leader of the main opposition New Democracy party, held talks that were chaired by President Karolos Papoulias. The meeting was an effort to bridge differences about the person who will lead the bipartisan government, as well as its life span and powers. But few details emerged after the 45-minute meeting.

“At their meeting, the two leaders have agreed to form a new government that will aim at leading the country to elections after implementation of decisions from the European Council on Oct. 26,” Papoulias said after the meeting.

The Ministry of Finance said in a statement later that a possible date for the elections was Feb. 19 as part of an agreed timeframe for the implementation of the EUR130 billion loan agreement.

The sexy blog Contra S Ola is urging the people not to vote.

Meanwhile, forget Greece. It’s Italy!