GREECE/FILE: Members of coalition government resign over terms of financial rescue package / Share prices fall at Athens Stock Exchange

Record ID: 343238

  • Title: GREECE/FILE: Members of coalition government resign over terms of financial rescue package / Share prices fall at Athens Stock Exchange
  • Date: 11th February 2012
  • Summary: ATHENS, GREECE (FEBRUARY 10, 2012) (REUTERS) ATHENS STOCK EXCHANGE SHARE PRICE TICKER SHOWING STOCKS JUST BEFORE CLOSING VIEW OF SHARE PRICES AT CLOSING VARIOUS GRAPHS SHOWING MOVEMENT OF THE MARKET SHARE PRICES SHARE PRICES REFLECTED ON THE WALL MORE OF GRAPHS GRAPH SHOWING WHERE THE GENERAL INDEX CLOSED, AT - 3.23 PERCENT -3.23 PERCENT WRITTEN ON THE GRAPH OF THE
  • Embargoed: 26th February 2012 12:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: Economy,Politics
  • Reuters ID: LVABRVLU6ZDYTUJ901HJZDXO2UE8
  • Story Text: Greece's Deputy Foreign Minister Marilisa Xenogiannakopoulou resigned in protest against tough terms included in a bailout agreement the country needs to avoid default, state television reported on Friday (February 10).
    The move by Xenogiannakopoulou, a member of the socialist party in the national unity government of technocrat Prime Minister Lucas Papademos, follows similar resignations by the socialist deputy labour minister and four far-right ministers of the LAOS party.
    The far right LAOS party ministers resigned after their party leader George Karatzaferis said he could not give his vote in parliament for a bailout package he agreed to a day earlier.
    The euro also fell after Karatzaferis' comment, which caused the single currency to extend earlier falls after euro zone finance ministers sought further measures from Greece before signing off on a 130 billion euro bailout package.
    Two of the LAOS ministers, Makis Voridis and Adonis Georgiadis said they would still vote in favour of the bailout loan agreement in parliament despite their resignation.
    The move could pave the way for a quick reshuffle before parliament must vote on the bailout package.
    The leader of the new Democratic Alliance Party Dora Bakoyanni, a former minister with the conservatives and ex mayor of Athens, accused Karatzaferis of playing political games with an eye on the upcoming elections.
    "Now you see before you, the shadow theatre that has been playing out all these days by everyone. It is a disgrace. The Greek people are in desperation and they are playing election games. I believe the punishment will be great," said Bakoyannis.
    With elections due as soon as April, Karatzaferis said his party could not vote in parliament for a rescue which demands a heavy price in wage, pension and job cuts - breaking ranks with Papademos and leaders of the much larger socialist and conservative parties in the three-month-old government.
    LAOS, which has slipped in opinion polls since it joined the government last November, has four ministers in the government and 15 deputies in the 300-seat Greek parliament.
    The party cannot prevent the 130 billion euro bailout from being passed when parliament votes on Sunday (February 12) or Monday (February 13), unless there is major dissent in the other parties. Karatzaferis asked for a government reshuffle and a cabinet of technocrats, but said it was not the time for elections.
    Eurogroup ministers said Athens must show it is committed to the reforms by passing the loan agreement legislation in parliament, and assure the programme will still be implemented after elections, due as early as April.
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