Europese Commissie verwijt partijen Griekenland onvermogen om regering van nationale eenheid te vormen (en)
EUOBSERVER / BRUSSELS - The European Commission reprimanded the Greek political class on Thursday for the governing and opposition parties' failure to forge a national unity government after talks broke down the day before.
"A great deal of responsibility lies on the shoulders of the Greek authorities and all Greek political leaders," EU economy commissioner Olli Rehn i said in a statement. "We expect the Greek Parliament to endorse the economic reform programme as agreed by the end of June."
The EU-IMF-ECB troika have pressed the Greek government with its slim majority to forge a cross-party consensus with the conservative opposition in return for the latest, €12 billion tranche of bail-out cash.
"It is regrettable that the efforts to build national unity failed yesterday," Rehn continued, saying that all parties must support the bail-out agreement.
"Indeed, the efforts needed to avoid a default - which would be a catastrophe for Greece - are the responsibility of all political forces."
"The next days will be critical for the financial stability and economic recovery in Greece and Europe. I trust all leaders in Greece and Europe realise their responsibility and will act accordingly."
On Wednesday, Greece's political crisis deepened when in talks with conservative opposition leader Antonis Samaras, Prime Minister George Papandreou i offered to resign as head of government in what he described as his fourth attempt at forging a coalition government.
However, Papandreou rejected demands by his opposite number that the memorandum of understanding between Greece and the Troika be renegotiated.
Rehn's rebuke came amid fresh turmoil in Athens.
As the prime minister attempted to move forward with a cabinet shuffle, Papandreou was blindsided by a further two resignations by senior MPs in his party, putting into question the government's ability to push through a new five-year plan of austerity and state-asset sell-offs.
Yiorgos Floridis, who had been tipped as a possible replacement for finance minister George Papaconstaniou, and Ektoras Nasiokas tendered their resignations.
However, the ruling Pasok party's narrow five-seat majority will not be reduced, as the pair are also stepping down from parliament rather than staying on as independents or defecting to other parties, meaning they will be replaced by other party figures.
In leaving, Floridis blasted the behaviour of both the government and opposition, saying that they had "sealed the end of a worn-out and redundant political system."
The prime minister intends to move forward with a cabinet shuffle, a move that will likely involve the replacement of some Pasok ministers with non-partisan ‘experts'.
It is all but certain that the finance minister will be amongst those to go, possibly to be replaced by a former Greek ECB official.
Papandreou has demanded a confidence vote, with the debate due to start on Friday and a vote on Sunday.
The new cabinet however may only last a few weeks, in place long enough to pass the five-year austerity package before, according to some reports, snap elections.
Meanwhile, Olli Rehn also announced that the question of reaching an agreement on the latest dispersal of funds to Greece will be separated from the wider issue of a second bail-out in what he called a "two-step" approach.
He said that he expected the Eurogroup of finance ministers will reach an accord on the issuance of the fifth tranche of loans in early July, and a decision on the medium term and the nature of private bondholder involvement in any such move later next month.
He said that he believed the IMF would be able to participate in the former step: "I trust that we will also be able to conclude the pending review, in agreement with the IMF."
There have been concerns that the Washington-based lender would not be able to sign on to the latest tranche of funds as its rules require that a country's funding requirements be resolved for the entire period of the coming year, a position that Greece cannot assure.
An EU official told EUobserver that there is "no fixed date for disbursement".
"The IMF has to take its decision, we have to take ours. It never happens the same day, although decisions are taken independently but with co-ordination."