Greek govt committed to austerity plan - Sky News Australia

Updated: 05:49, Tuesday November 8, 2011

A deal to form a national unity government in Greece proves the country is committed to implementing austerity measures demanded by foreign lenders, the Greek finance minister says.

'After a difficult week, we now have a new political situation in Greece, a new political frame(work) in Greece. We have a new government of national unity and of national responsibility,' said Evangelos Venizelos.

'This is the proof of our commitment and of our national capacity to implement the program and to reconstruct our country,' he told reporters as he arrived for a meeting with eurozone counterparts in Brussels on Monday.

Eurozone ministers are holding back 8.0 billion euros in aid from an existing 110 billion euro bailout for Greece until Athens approves a new debt rescue package, coupled with tough austerity measures, that was agreed last month.

Outgoing Prime Minister George Papandreou and the head of the opposition, conservative Antonis Samaras, were to continue talks in Athens to name a new leader who will head a coalition tasked with implementing the new eurozone deal.