The problems with Papademos’ nomination

Complications have surfaced in the negotiations between the government and ND for the formation of a coalition government.

Reportedly, ND does not accept for Lucas Papademos as PM because of the demands he has put forward; that is, to choose his own economy team and have a half-term administration, or at least until the conclusion of the outstanding issues relating to the loan agreement and the accompanying measures.

ND negotiators are allegedly still having reservations as to Papandreou's second proposal about European Ombudsman Nikiforos Diamandouros. Furthermore, Stavros Dimas denies that he has accepted a proposal to participate in the coalition government. However, it seems that the discussions have moved on to another person and ND expressed optimism that by late evening a solution might appear.

The New Democracy leadership insists that the government should be of "special purpose and limited duration", and this is why it has set as a priority, at least to a great extent, that no political figures should take part in it, hence the proposals for changes of people in the so-called "polling" ministries such as the Interior, Justice and the Ministry of Citizen Protection.

The former vice president of the European Central Bank, former Governor of the Bank of Greece and now advisor to Prime Minister George Papandreou, arrived from Boston to Athens at 17.30, and is having contacts with PASOK and New Democracy.

From these contacts it is clear that Papademos wants to man the economy team especially with people chosen only by him. This development, although not surprising based on the story published by protothema.gr earlier today, shows that final agreement between Papandreou and Samaras still has a long way to go.