European Union leaders on Thursday welcomed the formation of a new national unity government in Greece headed by former European Central Bank vice president Lucas Papademos.

"The agreement to form a government of national unity opens a new chapter for Greece. We have long stressed the need for a broad political consensus around measures to lift Greece out of this deep economic crisis. As such, we warmly welcome this news," declared European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy in a joint statement.

The two top EU official stress that "although this will be a transitional government, its workload will be extremely intense. A second program of financial assistance must be rapidly concluded, as foreseen by the Euro Summit on 27 October. The voluntary bond exchange with private sector investors should take place as planned at the beginning of 2012."

They believe 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.

In addition, Barroso and Rompuy urge fiscal consolidation in Greece together with the structural reforms needed to transform Greece's growth potential.

"We reiterate that our European Institutions will continue to do everything within their power to help Greece. But Greece must also do everything within its power to help itself.

We have relayed these messages to the Greek leadership. We look forward to meeting as soon as possible with the designated Prime Minister Lucas Papademos to discuss the pressing matters on our common agenda," the EU officials conclude.

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