Cabinet poised for resignation, change of PM

An emergency cabinet meeting finished shortly before 3 p.m., as Greece edges closer to having a new prime minister and government.

Current Prime Minister George Papandreou is said to have informed his ministers to have their resignations ready to speed up the process of forming a new government once its head has been agreed.

Former European Central Bank vice president Lucas Papademos remains the most likely candidate after reports that he spoke with Papandreou on the telephone earlier in the day.

Papademos is thought to want to bring several of his choices into the cabinet, which could also include politicians from both PASOK and New Democracy. The conservatives have been reluctant to place their members on the cabinet as they do not want to be seen to be supporting the new set of austerity measures that is expected to accompany Greece?s next bailout.

Among the names being mentioned as likely appointments by Papademos is the head of the IOBE think-tank Yiannis Stournaras.

The process of appointing the next government will involve the current ministers resigning, Papandreou informing President Karolos Papoulias of the candidate for prime minister and Papoulias then announcing the formation of a new cabinet.