Talks on new Greek government hit snag

ATHENS, Greece, Nov. 9 (UPI) -- Negotiations to pick a new Greek prime minister hit a snag early Wednesday only hours after Lucas Papademos, a respected economist, was close to being named.

The latest person mentioned as the likeliest contender Wednesday was Vassilis Skouris, president of the European Court of Justice, and observers didn't rule out a surprise challenger to succeed Prime Minister George Papandreou, The New York Times reported.

Media outlets earlier this week reported former European Central Bank Vice President Papademos was the top choice to succeed Papandreou, who said he would resign once political negotiators establish a new unity government.

Negotiations bogged down Tuesday when opposition party leader Antonis Samaras recoiled at a demand by the European Union's group of finance ministers that the five top Greek leaders commit in writing to the terms of an expanded bailout reached last month, the Times said.

"There is such a thing as national dignity," Samaras said in a statement. "I have repeatedly explained that in order to protect the Greek economy and the euro, the implementation of the Oct. 26 agreement is inevitable."

European Economic and Monetary Affairs Commissioner Olli Rehn said without the signed documents, Greece would not receive the loan installment of $10.9 billion it is expecting, ekathimerini.com reported.

"It is essential that the entire political class is now restoring the confidence that had been lost in the Greek commitment to the EU-IMF [European Union-International Monetary Fund] program," Rehn said. "It is essential that a new government will express its explicit and unequivocal commitment in writing concerning all the decisions taken by the 17 euro-area member states on Oct. 27."

The first job of the new Greek administration will be to secure the next round of aid officials said is needed by December so the country can pay its bills.

The administration also must secure approval of the loan deal, which requires Greek lawmakers to pass another round of austerity measures, including layoffs of government workers. Terms of the loan also call for permanent foreign monitoring to ensure Greece delivers on promised structural changes, which has some leaders charge is an affront to national dignity.