Demands mounted yesterday for Greek Prime Minister George Papandreou to resign and let a coalition government approve a European bailout plan instead of holding a risky referendum on it.
Papandreou’s proposal earlier this week to put the hard-fought bailout package to a referendum horrified Greece’s international partners and creditors, triggering turmoil in financial markets as investors fretted over the prospect of a disorderly default and the country’s exit from the eurozone.
The instability in Greece sent immediate ripples throughout Europe. Italian Prime Minister Silvio Berlusconi’s government was teetering as well after it failed to come up with a credible plan to deal with its dangerously high debts, while Portugal demanded more flexible terms for its own bailout.
Photo: AFP
The European Central Bank made a surprise decision yesterday to cut interest rates by a quarter of a percentage point to 1.25 percent, responding to the financial turmoil.
The drama also dominated the G20 meeting in the French resort of Cannes, where the leaders of the world’s economic powerhouses had gathered to solve Europe’s debt crisis, which threatens to push the world back into recession.
Papandreou was holding an emergency meeting yesterday with his ministers. Several of them called for a coalition national unity government that would approve the bailout package without a referendum and make sure the country receives vital funds to prevent imminent bankruptcy.
Rumors abounded about a possible Papandreou resignation, but two officials in his office denied reports that he would visit the country’s president and tender his resignation in the afternoon. The president’s office also said it had no knowledge of such a meeting.
Several of Papandreou’s close associates said they did not know what his intentions were, but he was delivering a speech to ministers.
“He wrote the speech himself. Nobody knows what’s in it,” said one close associate, who spoke on condition of anonymity.
Antonis Samaras, the leader of the main opposition party, called for a transitional government to ratify the European debt deal and prepare for early elections.
“Under the weight of these dramatic events, we have witnessed a crisis of the ability to govern. The country must immediately return to a state of normality,” Samaras said. “Under the current conditions, the new debt deal is unavoidable and must be safeguarded.”
State TV said lawmakers were sounding out former European Central Bank vice president Lucas Papademos as a possible unity government leader.
If the Greek government did fall, it would mean that every EU nation that had already received a bailout — Greece, Portugal and Ireland — had seen their governments fall during the economic turmoil.
Earlier yesterday, Papandreou’s own finance minister, Evangelos Venizelos, broke ranks with him and declared his opposition to a referendum.
“Greece’s position within the eurozone is a historic conquest of the country that cannot be put in doubt,” Venizelos said, adding that it “cannot depend on a referendum.”
Venizelos said the country’s attention should be focused on quickly getting a crucial 8 billion euros (US$11 billion) installment of bailout funds, without which it faces bankruptcy within weeks.
“What matters now, is that we must save what we can, to remain united,” Greek Health Minister Andreas Loverdos said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College