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Debt Crisis: Greece’s former PM steps down but fears for country’s economy continue


Lucas Papademos. Photo: Getty Images

Lucas Papademos. Photo: Getty Images

Lucas Papademos. Photo: Getty Images

GREECE’S former prime minister George Papandreou has told his PASOK socialist party that he will step down as leader and he will not seek re-election.

The move came as investors’ feared time is running out for the country to fix its debt crisis and its need for a further €130bn in EU/IMF/ECB bailout funding.

Greece's new prime minister Lucas Papademos held talks today with trade unions and trade federations in a bid to butter them up ahead of new, strict austerity measures which are attached to the bailout loans.

Mr Papandreou, who was forced to step down as prime minister late last year to make way for a coalition government, made the announcement at a party meeting today.

Earlier this week, Greece’s new Government warned it may have to leave the eurozone if the way is not paved for its latest installment of bailout funds.

Stock markets were lower today as encouraging signs about the US manufacturing industry were tempered by investors' fears that time was running out for Greece.

Britain's FTSE 100 lost 0.2pc to 5,689.47, Germany's DAX fell 0.6pc to 6,128.62 and France's CAC-40 was down 0.9pc to 3,217.26

PA Media