Papandreou breaks with PASOK

Papandreou revealed that he planned to form a new party called the "Movement for Change" in a statement posted to his website on Friday. The announcement comes ahead of snap general elections scheduled for January 25 and confirms a long-expected split from the center-left Panhellenic Socialist Movement (PASOK) founded by his father.

"It's time for the next big step of the progressive forces in the country," Papandreou said in a post on his Facebook page.

"It's time to build, together, a new political home that will house our progressive values, the values that unite us," he said.

A statement posted on his website said more details would be released on Saturday after documents had been filed at the high court.

Papandreou served as prime minister of Greece between 2009 and 2011 at the height of the global financial crisis.

He agreed to step down in 2011 following a botched effort to hold a national referendum on Greece's international bailout and a collapse in support for his party.

The 62-year-old belongs to one of Greece's most prominent political dynasties - his grandfather Georgios served three terms as prime minister of Greece in a career spanning five decades. His father, Andreas, was also a dominant figure in Greek politics, particularly following the 1967-74 dictatorship when he founded PASOK and served three terms as prime minister.

Big role for small parties

Observers had expected Papandreou to break from PASOK, which forms part of the ruling coalition led by Prime Minister Antonis Samaras' center-right New Democracy party. Recent surveys put support for PASOK as low as 5 percent, and a split could take it below the 3 percent threshold needed to get into parliament.

Polls in the leadup to the vote, called after parliament failed to elect a new Greek president, show New Democracy is narrowly trailing behind the radical left-wing Syriza party.

Syriza, led by Alexis Tsipras, wants to renegotiate Greece's international bailout deal and cancel a large part of the nation's debt.

It is possible, however, that neither party will win enough votes to govern alone, meaning smaller parties will likely have an important role in determining the makeup of next government.

nm/ipj (Reuters, AP)