Greek PM Papandreou to resign: reports

Greek Prime Minister George Papandreou is expected to resign from his position after the nation's new coalition government has been formed, a spokesman from his party said Sunday, CNN reported.  

"I'm not interested in being prime minister in the new government," Papandreou said in the text of remarks to his cabinet, released to the media, the Daily Telegraph reports. 

He told the cabinet that Greece would be presented with a new government within hours and that he would vacate office soon after.

Finance Minister Evangelos Venizelos will most likely remain in his post as finance minister in a new government, CNN reported.  Candidates for prime minister include Petros Moliviatis and Loukas Papaimos, according to Greek television.

As elections will be held in early spring, the new coalition government will only have a life of four months, Greek television reported.  

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The coalition government is tasked with saving the nation from bankruptcy.  

A Greek default could drag down larger European economies, in particular those of Italy and Spain, as well as struggling Portugal and Ireland, analysts warn.

Greece's president, Karolos Papoulias, has appealed for cooperation to resolve the political crisis in Greece following the tumultuous week during which Papandreou announced and ditched a plan for a referendum on a euro zone bailout package.  

"My aim is to immediately create a government of cooperation," Papoulias said at the presidential palace, Reuters reported. "A lack of consensus would worry our European partners over our country's will to stay in the euro zone."

According to Reuters, there is a widespread fear that Greece might be forced out of the euro.

Papandreou met with the head of the oppostion part, Antonis Samaras, and the president earlier today, the Sunday Telegraph reported.  The three thrashed out a seven point plan for the new government.  The plan includs a deadline for parliament to ratify the euro zone bailout. 

"It is clear that this government will pass the baton but it will not pass it to a void – it will pass it to a new government, if we agree on it, and I hope this will happen soon. And when I say soon, I mean today, not tomorrow," Papandreou said in the text of remarks to his cabinet, released to the media.