Papademos to lead Greek crisis coalition

ATHENS,  (Reuters) – Former European Central  Bank vice-president Lucas Papademos will head Greece’s new  crisis coalition, the president’s office said today,  ending suspense over who will try to save the country from  default, bankruptcy and an exit from the euro zone.
The coalition will be sworn in at 1200 GMT on Friday, a  presidential official said after Papademos struck a deal on the  national unity government with outgoing Prime Minister George  Papandreou and the opposition leader.
“The Greek economy is facing huge problems despite the  efforts undertaken,” Papademos said as he emerged from the talks  brokered by President Karolos Papoulias.
“The choices we make will be decisive for the Greek people.  The path will not be easy but I am convinced the problems will  be resolved faster and at a smaller cost if there is unity,  understanding and prudence.”
Papademos, a respected figure in European capitals and on  financial markets, said the coalition had the specific task of   implementing a 130-billion-euro ($177 billion) bailout deal with  the euro zone before calling an early election.
He cuts a grey and uncharismatic figure in the colourful and  chaotic world of Greek politics, but also has a reputation for  being calm at a time when the nation is clamouring for  stability.
“He’s a clear policy thinker. He was never involved in  politics. He knows what needs to be done,” said Thanos  Papasavvas, head of currency management at Investec Asset  Management in London.
The deal was struck after often chaotic negotiations among  the party leaders, producing one deal to install the speaker of  parliament as premier that collapsed before it had been sealed.
“After days of farcical comedy, Greece has today a prime  minister who is fully qualified to succeed in the task he has  been assigned to,” said Costas Panagopoulos, head of pollsters  Alco.
“The fact that the parties finally managed to cooperate is  also very positive. I hope that the big gap between political  parties and Greek citizens will now start shrinking.”