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Saakashvili told a televised meeting with parliamentary deputies that he and Gurgenidze had taken a ''joint decision,'' saying constitutional amendments obliged the president to name a new prime minister after parliamentary elections held in May.
He told a later meeting of majority leaders that Gurgenidze's departure had been planned before the war, in which Russian troops repelled a Georgian military bid to retake the breakaway South Ossetia region.
''When Lado was appointed a year ago he told me he would be able to do this just for one year,'' Saakashvili said, sitting beside Gurgenidze. ''Now we face new challenges.''
''New power and new energy are needed to address these challenges. Our economy is under twin assault -- from the global financial crisis and the Russian aggression.''
Gurgenidze said it was ''a joint, consensual decision.''
He told Reuters: ''I have no doubt about the continuity of liberal economic policies in Georgia, which have driven Georgia's success over recent years.''
Officials said the prime minister-designate would reveal his new cabinet before a parliamentary debate, a date for which has yet to be announced. Saakashvili said there would be no radical changes to the cabinet.
Gurgenidze, a 37-year-old technocrat and former banker, became prime minister in November 2007, with the task of attracting foreign investment and maintaining economic growth.
But the August war has hit investor confidence and reined in otherwise healthy growth forecasts
Zimbabwe talks failure triggers summit call
HARARE (Reuters) A regional meeting failed to break a deadlock threatening Zimbabwe's power-sharing accord on Monday, prompting the 15-nation Southern African Development Community to call for an urgent full-scale summit on the crisis.
Officials said the summit could be held this week or next week in an attempt to persuade President Robert Mugabe's ZANU-PF and opposition factions to implement the accord, widely seen as vital to any effort to pull Zimbabwe out of economic meltdown.
The Southern African Development Community (SADC) said the allocation of the Interior Ministry, which oversees the police force, was a sticking point in negotiations between ZANU-PF and the opposition on forming a cabinet.
SADC convened Monday's meeting amid fears the September 15 power-sharing deal was about to unravel after weeks of fruitless negotiations between ZANU-PF and the two factions of the opposition Movement for Democratic Change (MDC).
Opposition leader Morgan Tsvangirai said no good news had emerged from the meeting of the leaders of Mozambique, Angola, Swaziland and South Africa, who held talks with ZANU-PF and the MDC factions.
''The extraordinary summit of the SADC Troika recommends the holding of a full SADC summit to review the political situation as a matter of urgency,'' SADC said in a communique.
''The extraordinary summit noted with concern disagreements in the allocation of the (Interior) Ministry ... and urged parties concerned to reach an agreement,'' said SADC
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