Greeks agree to form unity government

Daniel Mason, Public Service Europe, 07.11.2011

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Greeks will discover later today who is to head their new government after the leaders of the two main political parties forged a deal on forming a national unity coalition – in a last-ditch bid to ensure that the latest European Union bail-out goes ahead and the country is not forced into a disorderly default on its debts. […]

In a paper for the European Policy Centre, Janis A. Emmanouilidis wrote that the chaos of the last week might act as a wake-up call. "The threat of being compelled to abandon the euro is fostering a more honest debate about the economic, social and political consequences of Greece returning to the drachma. Almost two years into the crisis, ordinary Greeks are suffering from the negative socio-economic effects of the crisis – high unemployment, cuts in wages and pensions, strikes etc. Despair, frustration and anger are widespread. But the Sword of Damocles of a hard default and the threat of a 'voluntary' exit from the euro zone, or even the EU, is increasing public and political awareness of what needs to be done in order to prevent much worse – unprecedented mass impoverishment, fundamental political instability and conflict, and increasing social tensions." […]

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