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New Greek leader stresses euro importance

Lucas Papademos named as new Greek prime minister
Lucas Papademos named as new Greek prime minister

Incoming Greek Prime Minister Lucas Papademos has called on all Greeks to contribute to resolving the huge problems faced by a country at a "crucial crossroads".

Earlier, a statement from the Greek presidency said Papademos had been instructed to form a new government after talks with political leaders.

Papademos, a former European Central Bank deputy chief, said his new administration's main mandate was to implement a euro zone bail-out deal. He called for wider backing for the coalition.

He also said Greece's euro membership was a "guarantee of monetary stability" for the country.

"The Greek economy is facing huge problems despite the efforts undertaken," he said in his first public remarks since being named Greece's next prime minister.

"The choices we will make will be decisive for the Greek people. The path will not be easy but I am convinced the problems will be resolved faster and at a smaller cost if there is unity, understanding and prudence."

The new government will be sworn in tomorrow, the presidency said. The interim government is being formed for approximately 15 weeks to secure current bail-out funding for Greece and a new €130 billion rescue package for the debt-strapped nation from euro zone partners and the International Monetary Fund.

Papademos, who is not a member of any party, joined talks this morning two hours after a meeting started between Socialist Prime Minister George Papandreou and conservative opposition leader Antonis Samaras.

Meanwhile, EU leaders have asked the new Greek government to send "a strong cross-party message of reassurance" to its partners to prove it would work to reduce the country's debt.

Welcoming the naming of a new prime minister, EU president Herman Van Rompuy and European Commission president Jose Manuel Barroso said: "It is important for Greece's new government to send a strong cross-party message of reassurance to its European partners that it is committed to doing what it takes to set its debt on a steady downward path."