According to reports, George Papendreou, the current Prime Minister of Greece, will step down after a new coalition governement is put in place in the embattled European country. This seems to be a somewhat unsurpsing move because there have been talks of Greece implementing a transistional or coalition government, and it is understandable that this group would seek new leadership.
It is needless to say however that the timing of the announcement adds just another chapter in the whirlwind of turmoil and change occuring in Greece's political and economic environment. The latest bailout package (reached on October 26th) included roughly 130 billion euros being offered to Greece, which on the surface looks like a tremendous amount. But as the article states, the deal also involves privitizing some businesses, cutting pensions, and slashing government jobs; all factors that could have negative impacts on the already floundering economy. If the economy continues to tailspin, the EU has warned that saving and keeping the euro healthy will not be risked just to save Greece. But a Greek default could have unwanted ripple effects on other promininent but struggling economies in the EU such as Portugal, Italy, and Spain, which along with Greece make up the equally unwanted (but accurate) acronym, P.I.G.S. To severley understate the situation is to say that whoever comes into power in Greece has a difficult task ahead.
David Johnson
http://www.cnn.com/2011/11/06/world/europe/greece-main/index.html?hpt=wo_c1
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