Lucas Papademos

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Lucas Papademos
Λουκάς Παπαδήμος
LucasPapademos.jpg
Prime Minister of Greece
In office
11 November 2011 – 16 May 2012
President Karolos Papoulias
Deputy Theodoros Pangalos
Preceded by George Papandreou
Succeeded by Panagiotis Pikrammenos
Vice President of European Central Bank
In office
31 May 2002 – 31 May 2010
President Wim Duisenberg
Jean-Claude Trichet
Preceded by Christian Noyer
Succeeded by Vítor Constâncio
Governor of the Bank of Greece
In office
26 October 1994 – 31 May 2002
Deputy Panagiotis Thomopoulos
Preceded by Ioannis Boutos
Succeeded by Nikolaos Garganas
Personal details
Born (1947-10-11) 11 October 1947 (age 67)
Athens, Greece
Political party Independent
Spouse(s) Shanna Ingram
Alma mater Massachusetts Institute of Technology
Religion Greek Orthodox

Lucas Demetrios Papademos (Greek: Λουκάς Παπαδήμος; born 11 October 1947) is a Greek economist who was the Prime Minister of Greece from 2011 to 2012, leading a provisional government in the wake of the Greek debt crisis.

He was previously the Governor of the Bank of Greece from 1994 to 2002, before leaving to become Vice President of the European Central Bank from 2002 to 2010. He was a Visiting Professor of Public Policy at the Kennedy School of Government at Harvard University and is a Senior Fellow at the Center for Financial Studies at the University of Frankfurt.[1]

Early life and education[edit]

Papademos was born in Athens to parents who came from the town of Desfina in Phocis.[2] After graduating from Athens College in 1966, Papademos was accepted into the Massachusetts Institute of Technology, where he gained a bachelor's degree in physics in 1970, a master's degree in electrical engineering in 1972, and a doctorate in economics in 1978.

Career as an economist[edit]

In 1975, he worked with Franco Modigliani on the NAIRU concept.[3] He engaged in a career in academia, teaching economics at Columbia University from 1975 until 1984, before moving to the University of Athens in 1988.[4]

His work as an economist began in 1980, when he was appointed Senior Economist at the Federal Reserve Bank of Boston. He joined the Bank of Greece in 1985 as its Chief Economist, rising to the rank of Deputy Governor in 1993, and finally Governor in 1994. During his time as Governor of the central bank, Papademos was involved in Greece's transition from the drachma to the euro as its national currency.

After leaving the Bank of Greece in 2002, Papademos became the Vice President to Wim Duisenberg, and then Jean-Claude Trichet, at the European Central Bank from 2002 to 2010. In 2010 he served as an economic advisor to Greek Prime Minister George Papandreou.[5]

He is a member of the Academy of Athens.[4] He has published numerous articles in the fields of macroeconomic theory, the structure and functioning of financial markets, monetary analysis and policy, theory of chaos as well as on subjects concerning the economic performance, financial stability, financial instability and economic policy in the European Union.[6] He has also delivered addresses on the Greek debt crisis.[7]

Prime Minister of Greece[edit]

Prime Minister Papademos speaking to the Hellenic Parliament on 14 November 2011

Papademos was first proposed as a potential caretaker Prime Minister of Greece in early November 2011, after Prime Minister George Papandreou offered to resign and allow a provisional coalition government to deal with the major political turmoil caused by the country's debt crisis.[8][9]

Lucas Papademos set two conditions upon which he would accept the offer of being Prime Minister of this provisional government. The first was that the new government would not have a very restricted life span as New Democracy had demanded, and the second was that political figures from both New Democracy and the Panhellenic Socialist Movement (PASOK) would participate in the government. Both of these were initially vetoed by New Democracy, but after several days of negotiations they relented and accepted Papademos' demands. This enabled Papademos to form a government made up of PASOK and New Democracy, with the support of the far-right Popular Orthodox Rally.

After a week of political turmoil and negotiations between parties triggered by Papandreou's resignation, Papademos was sworn in as Prime Minister of Greece on 11 November 2011, unveiling his provisional Cabinet shortly afterwards.[10] The other two parliamentary parties, the Communist Party and the Coalition of the Radical Left (SYRIZA), had refused Papandreou's invitation to participate in the government.[11] The provisional government also marks the first time that the far-right has played a part in any Greek government since the fall of the military junta in 1974.[12]

Papademos stated that his government's primary task would be to facilitate the financial bailout from the European Union - which was provided on the condition that severe budget austerity be implemented - and to lead the country until elections could be held. Papademos also stated that his sole priority as Prime Minister would be to try and keep Greece within the Eurozone.[13]

In January 2012, Papademos warned that workers would have to accept substantial cuts in their income in order for a default to be avoided. He also told business and union leaders that the "troika" — the European Union, the International Monetary Fund and the ECB — was looking for Greece to take steps to open up so-called closed professions, as well as adjustments to the minimum wage, abolition of Christmas and summer vacation bonuses and automatic wage increases.[14] Papademos also declared in January that his provisional government would last until at least April, instead of February as was originally planned, so that further austerity measures could be implemented before an election.[15]

In late April 2012, Papademos announced that he would ask President Karolos Papoulias to dissolve the Hellenic Parliament, paving the way for a general election to be held on 6 May 2012. Papademos had intended to stand down shortly after this election, but it resulted in a hung parliament. Subsequently New Democracy, PASOK, and the anti-austerity SYRIZA - which had jumped into second place - attempted to form a government, but all were unsuccessful. Emergency negotiations to attempt to avoid a return to the polls took place on 13 May, but were inconclusive. On the same day, Papademos wrote to President Papoulias to inform him that the Ministry of Finance could only afford to pay salaries until the end of June, and that the need for Greece to recapitalise her liquid assets was "urgent".[16] Negotiations in the aftermath of the election were unable to produce a government and Greece will be forced to have a second general election, which will take place on 17 June 2012.[16] In the wake of the announcement of the election Papademos stepped down, proposing Panagiotis Pikrammenos - a judge and the President of the Council of State - to replace him as caretaker Prime Minister until a permanent government can be formed.[17]

Personal life[edit]

Papademos has been married to Shanna Ingram[18]—of Dutch descent—for more than 30 years. They have no children.[19]

References[edit]

  1. ^ "Prof Lucas Papademos", Goethe University Frankfurt Retrieved 12 November 2011.
  2. ^ "Ta Nea" news-paper, online edition, 7 Nov. 2011, in Greek language.
  3. ^ Modigliani, Franco, and Lucas Papademos, 1975. “Targets for Monetary Policy in the Coming Year” Brookings Papers on Economic Activity, 141 – 165. The Brookings Institution.
  4. ^ a b "Harvard Kennedy School". Harvard Kennedy School. Retrieved 6 November 2011. 
  5. ^ "Lucas Papademos: profile". London: The Telegraph. 3 November 2011. Retrieved 7 November 2011. 
  6. ^ "Lucas Papademas". Eurofi (www.eurofi.net). Retrieved 7 November 2011. 
  7. ^ "Video: The European Economic Crisis Seminar Series: The Case of Greece – Keynote". Center for Strategic and International Studies. 11 April 2011. Retrieved 7 November 2011. 
  8. ^ "Lucas Papademos named as new Greek prime minister". BBC. 10 November 2011. Retrieved 10 November 2011. 
  9. ^ Smith, Helena (10 November 2011). "Lucas Papademos to lead Greece's interim coalition government". Guardian (UK) (London). Retrieved 10 November 2011. 
  10. ^ "Papademos sworn in, heads Greek cabinet of stalwarts". Reuters. Retrieved 11 November 2011. [dead link]
  11. ^ "Political opposition divided over unity government". e.kathemerini.com. 7 November 2011. Retrieved 11 November 2011. 
  12. ^ "Papademos sworn in to lead party-packed Greek cabinet". Reuters. 11 November 2011. Retrieved 12 November 2011. 
  13. ^ "Greece swears in unity cabinet and PM Lucas Papademos". BBC. 11 November 2011. Retrieved 11 November 2011. 
  14. ^ Petrakis, Maria; Weeks, Natalie (5 January 2012). "Papademos Warns Fellow Greeks Economic Collapse Looms Without Sacrifice". Bloomberg. 
  15. ^ http://www.europeanvoice.com/article/2011/december/greek-elections-delayed-until-april/73071.aspx
  16. ^ a b Greek president calls for technocrat government
  17. ^ "Greece to hold new election on 17 June". BBC News. 16 May 2012. 
  18. ^ "Vrouw van nieuwe premier Griekenland is Nederlandse" (in Dutch). Volkskrant. 11 November 2011. Retrieved 18 November 2011. 
  19. ^ Sana Ingram – the Dutch artist behind the success of Lucas Papademos, 11 November 2011.

External links[edit]

Business positions
Preceded by
Ioannis Boutos
Governor of the Bank of Greece
1994–2002
Succeeded by
Nikolaos Garganas
Preceded by
Christian Noyer
Vice President of the European Central Bank
2002–2010
Succeeded by
Vítor Constâncio
Political offices
Preceded by
George Papandreou
Prime Minister of Greece
2011–2012
Succeeded by
Panagiotis Pikrammenos