president Lucas Papademos will head Greece's new crisis coalition, the president's office said Thursday, ending suspense over who will try to save the country from default, bankruptcy and an exit from the euro zone. The coalition will be sworn in at 1200 GMT Friday, a presidential official said after Papademos struck a deal on the national unity government with outgoing Prime Minister George Papandreou and the opposition leader. “The Greek economy is facing huge problems despite the efforts undertaken,” Papademos said as he emerged from the talks brokered by President Karolos Papoulias. “The choices we make will be decisive for the Greek people. The path will not be easy but I am convinced the problems will be resolved faster and at a smaller cost if there is unity, understanding and prudence.” Papademos, a respected figure in European capitals and on financial markets, said the coalition had the specific task of implementing a 130-billion-euro ($177 billion) bailout deal with the euro zone before calling an early election. He cuts a grey and uncharismatic figure in the colorful and chaotic world of Greek politics, but also has a reputation for being calm at a time when the nation is clamoring for stability. “He's a clear policy thinker. He was never involved in politics. He knows what needs to be done,” said Thanos Papasavvas, head of currency management at Investec Asset Management in London. The deal was struck after often chaotic negotiations among the party leaders, producing one deal to install the speaker of parliament as premier that collapsed before it had been sealed. “After days of farcical comedy, Greece has today a prime minister who is fully qualified to succeed in the task he has been assigned to,” said Costas Panagopoulos, head of pollsters Alco. “The fact that the parties finally managed to cooperate is also very positive. I hope that the big gap between political parties and Greek citizens will now start shrinking.” In a sign of the daunting problems he will face, the statistics service ELSTAT reported that unemployment jumped to a record high of 18.4 percent in August — at the height of the tourism season when the rate traditionally falls — from 16.5 percent in July.
