Greek Prime Minister George Papandreou and opposition leader Antonis Samaras reached an agreement on Sunday night to form a new interim coalition government.
This will allow Greece to proceed with the eurozone bailout without the need for immediate, disruptive elections. Papandreou agreed to stand down and a new leader is to be announced on Monday.
According to Ekathimerini
, President Karolos Papoulias announced, “There will be an immediate meeting between representatives of the two sides to determine the obligations that stem from the implementation of the October 26 agreement."
Elections are expected in the early part of 2012 when the bailout deal is in place.
According to Athens News
, Papapandreou told the cabinet, "It is clear that this government will pass the baton but it will not pass it to a void -- it will pass it to a new government, if we agree on it, and I hope this will happen soon. And when I say soon, I mean today, not tomorrow. I'm not interested in being prime minister in the new government."
Speculation regarding the new leader focuses on Finance Minister Evangelos Venizelos and Former European Central Bank Vice President Lucas Papademos, though the latter is reportedly not in Greece at this time.
reported a spokesperson for opposition party New Democracy said, "Our two targets, for Mr Papandreou to resign and for elections to be held, have been met."
New Democracy dropped calls for an immediate election and appear satisfied to wait until next year with Feb. 19 suggested as a suitable date.
Although the two main political parties have reached an agreement the Greek communist party (KKE) is not impressed with the solution. It issued a statement saying the agreement "is the demand of Greek plutocracy and EU. Their aim is not to save the people but to subject them and lead them to an even greater massacre via the loan agreement and the Memoranda of bankruptcy."