Bloomberg News

Greece’s Karatzaferis Supports Papademos on EU’s Bailout Plan

November 26, 2011

Nov. 26 (Bloomberg) -- George Karatzaferis, leader of Greece’s Laos party, said he would support Prime Minister Lucas Papademos’s efforts to implement the 130-billion-euro ($172 billion) bailout for the country approved by European leaders on Oct. 26.

“Our participation in the government of Mr. Papademos confirms our support of the multiyear adjustment program,” Karatzaferis said in an open letter today in the party’s newspaper, Alfa Ena, addressed to Greeks and the European Union, European Central Bank and International Monetary Fund. Laos is the third party in the country’s unity administration.

Euro-zone leaders and the IMF have demanded a written endorsement of budget cuts from party leaders supporting the interim government. Euro-area finance ministers, led by Luxembourg Prime Minister Jean-Claude Juncker, intend to decide at a Nov. 29 meeting in Brussels whether Greece qualifies for an 8 billion-euro loan payment under last year’s 110 billion-euro rescue, before it runs out of money in mid-December.

Karatzaferis cited the safeguarding of pensions and wages for millions of Greeks as motivation to support the program based on the Oct. 26 bailout agreement, while adding that “some adjustments to program policies are necessary.”

“Our proposals, however, will move directly to the objectives for successful fiscal consolidation, privatization with absolute transparency, economic stabilization, liberalization, with prudence and realism,” he wrote in the letter.

Karatzaferis said he would support the objectives of the plan in the next parliament and that if conditions stabilize, elections should be held on Feb. 19.

--Editors: John Deane, Colin Keatinge

To contact the reporter on this story: Tom Stoukas in Athens at

To contact the editor responsible for this story: Angela Cullen at

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