Greece Tries to Forge Unity Deal as Bankruptcy Looms

Greece's bickering politicians were to resume talks Thursday on a unity government to take the crisis-hit country out of economic paralysis as global pressure for a deal mounted to avert bankruptcy.

Greek President Carolos Papoulias has called a meeting of party chiefs for 0800 GMT with reports indicating that former European Central Bank vice-president Lucas Papademos would be given the reins of government.

The semi-state Athens News Agency said outgoing socialist Prime Minister George Papandreou had spoken with main opposition head Antonis Samaras late Wednesday to forge an agreement on the next leader.

The new unity government in the debt-laden country will be called upon to ratify a critical international bailout and hold early elections.

Leading daily Ta Nea and leftist Eleftherotypia both dismissed the imbroglio as an "operetta" while Ethnos said that the appointment of a prestigious interim prime minister was a "one-way street."

On Wednesday, Greece's European peers and creditors watched in disbelief as a third day of marathon talks failed to reach a breakthrough which is desperately needed to secure a tranche of aid before the coffers run dry.

Papandreou, whose father and grandfather were both prime ministers, bade the nation farewell with a sentimental televised speech after two austerity-filled years at the helm.

But the political drama descended into farce as an apparent done deal broke up again into acrimony, with the head of Greece's small nationalist party storming out of talks at the presidential mansion in protest after the choice appeared to settle on the country's parliament chairman instead of Papademos.

Deputies from both the ruling Pasok socialist party and the main opposition New Democracy conservatives are believed to have also opposed the appointment of parliament head Philippos Petsalnikos, arguing that someone with greater clout was required to hold talks with Greece's creditors.

Former central banker Papademos, 64, has the advantage of a strong reputation in international financial circles but apparently made unacceptable demands, for example asking for elections to be delayed.

Others rumored in the media were Vassileios Skouris, 63, president of the European Court of Justice, and European ombudsman Nikiforos Diamantouros, 69.

Former finance minister Panagiotis Roumeliotis, 64, who represents Greece at the IMF, has also been mentioned as a possible candidate for the poisoned chalice of a job.

Whoever finally wins the job faces a mountainous to-do list.

His first job will be to persuade the EU and International Monetary Fund to disburse an eight-billion-euro ($11-billion) slice of aid from a 2010 bailout deal that is desperately needed by December 15 before the money runs out.

Then he must force through painful austerity measures exacted as the price for a second EU bailout package which gives Athens 100 billion Euros in loans, the same amount in debt reduction and a further 30 billion in guarantees.

Drawing a firm line in the sand, crisis-weary France and Germany last week gave Athens a stark choice: adopt belt-tightening measures or leave the euro.

The new premier must also bring together Greece's warring politicians for a unity administration in a country used to adversarial politics -- combat rather than compromise -- ahead of elections provisionally set for February.