Euro "guarantees monetary stability" for Greece: Papademos

(ATHENS) - Greece's new prime minister-in-waiting Lucas Papademos, a former European Central Bank deputy chief, said Thursday the nation faced "huge problems" but its euro membership was a "guarantee for monetary stability."

"I am convinced that the participation in the euro is a guarantee of monetary stability and a factor of economic stability," he told reporters outside the presidential mansion moments after President Carolos Papoulias gave him a mandate to form a transitional government to ratify a crucial EU bailout.

"The Greek economy is facing huge problems despite the enormous efforts made ... Greece is at a crucial crossroads," said the 64-year-old, adding: "The course will not be easy."

With his global contacts and inside knowledge of European monetary policy, Papademos is seen by many Greek politicians as the country's last hope to restore credibility in its debt-ridden economy and avert bankruptcy.

He will head a government of transition whose main task is to ratify a crucial EU bailout package promising to trim Greece's enormous debt by nearly a third.

The ratification will unlock billions of euros in EU loans that Athens needs before its reserves run out in mid-December.

Early elections are also scheduled to be held.

Papademos on Thursday said "no exact time" had been set but an earlier call by the main political parties for a snap ballot on February 19 constituted a "point of reference."