Prime Minister George Papandreou has proposed forming a national unity government with Greece's opposition political parties in an effort to build a consensus for austerity measures and other economic reforms, a senior Socialist party official said Wednesday.
In a series of telephone conversations with the heads of Greece's four opposition parties earlier in the day, Mr. Papandreou said he was willing to consider stepping down if that would open the door to a much-sought consensus.
"The prime minister has proposed to the other party leaders a national unity government," the official said. "And if there is agreement, he is considering stepping down as prime minister."
He also is willing to remove Finance Minister George Papaconstantinou from his post if such a government is formed, the party official added.
One prerequisite, the official said, is that Parliament approve a new set of austerity measures at the end of June, which is seen as a precondition for Greece to receive the next disbursement of its €110 billion ($159 billion) bailout.
Greece also is seeking at least €60 billion in fresh aid from the European Union and International Monetary Fund. Further austerity measures also are seen as a requirement for any new aid.
The negotiations came Wednesday as Greek police fought street battles with dozens of self-styled anarchist youths in the center of Athens, as a mass protest over new government austerity measures descended into violence.
By COSTAS PARIS, ALKMAN GRANITSAS and BRUCE ORWALL
WSJ
