Thursday, June 16, 2011

Greece: Leading Socialist quits ahead of reshuffle (AP)

ATHENS, Greece ? A prominent Greek Socialist lawmaker resigned his seat in parliament Thursday, hours before Prime Minister George Papandreou was to announce a cabinet reshuffle.

Former public order minister Giorgos Floridis announced his resignation a day after the government and the opposition conservatives failed to create a coalition government designed to broaden support for vital austerity measures.

The resignation was the latest setback for Papandreou, who is facing harsh criticism from within his party before a crucial vote this month on a new round of austerity measures considered crucial to avoid a summer default.

The 55-year-old Floridis, who has fiercely criticized the slow pace of reforms in Greece, had been tipped to join the new government. His resignation does not affect the government majority in parliament as his seat will now go to another member of the Socialist party.

Surprise coalition talks between the government and rival conservatives collapsed Wednesday, despite weeks of pressure from the European Union on the two parties to reach cross-party consensus on cost-cutting measures.

"Unfortunately, the leaderships of the two main political parties have once again failed to rise to national circumstances, in a politically unforgivable way," Floridis wrote in his letter of resignation.

"Instead of sounding a national alert ... the parties resorted to making their own petty calculations. There is no clearer illustration of a worn-out and retiring political system."

Floridis, as deputy finance and public order minister, played a key role in preparations for the 2004 Olympics in Athens

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/ap/20110616/ap_on_bi_ge/eu_greece_financial_crisis

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