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MULTIMEDIA
May 26, 2012
 
 
 
 
 
 

New Greek cabinet named, focus on flagging economy

Newly appointed ministers take their oaths at the presidential palace in Athens on Wednesday. George Papandreou's PASOK Party won Sunday's poll.
8 October 2009 / REUTERS, AP, ATHENS
New Greek Prime Minister George Papandreou on Tuesday named economy and finance ministers who were welcomed by analysts as a good team to hit the ground running and tackle an economy on the verge of recession. Theodore Pangalos was named deputy prime minister.

Long-time adviser Louka Katseli, as economy minister, and socialist party spokesman George Papaconstantinou in the finance post face an economy that has slowed sharply after years of 4 percent growth and is now burdened by a ballooning deficit and record youth unemployment.

 "The biggest challenge for them is the recession. There is no grace period, they cannot afford to waste a single day," said political analyst Thodoris Livanios at Opinion pollsters.  "It's a team with the right academic credentials to do the job, despite the difficulties."  To take on this task, Papandreou appointed a mix of senior party members like Katseli, who served as economic adviser to his father Andreas when he was prime minister, and a younger generation with international experience such as EU lawmaker Papaconstantinou."The twin appointment has the skills to handle effectively the economic difficulties," said Takis Zamanis, chief trader at Beta Securities.   One of their first challenges will be to draft a 2010 budget by November and convince Brussels to give Greece more time to bring its deficit -- estimated at least 6 percent for 2009 -- under the euro zone's 3 percent cap.

    Papandreou split the ministry of national economy and finance in two in a move meant to signal that fighting the crisis was the government's top priority, analysts said. "This is a good choice for a ministry that will be a priority in the next four years and an immediate priority right now," said Gikas Hardouvelis, an economics professor at Piraeus University. "The issue of revenues and government spending is so important right now that it needs its own minister." Papandreou himself took the foreign ministry portfolio, a post he has held before. Analysts expect little to change in this arena.  An EU and NATO member, Greece backs longtime arch-rival Turkey's EU entry but on the condition that it helps peace talks to reunite the divided island of Cyprus.

 Papandreou is credited with improving ties with Turkey when he was foreign minister in the 1990s, boosting bilateral trade and easing political tensions in the eastern Mediterranean. Papandreou's PASOK Party won Sunday's snap election with a comfortable majority.

List of the new Greek socialist government 

Prime Minister: George Papandreou

Deputy PM: Theodore Pangalos

Interior, Decentralization and Electronic Governance Minister: Yiannis Ragoussis

Finance: George Papaconstantinou

Foreign Affairs: George Papandreou

Defense: Evangelos Venizelos

Economy, Competitiveness and Shipping: Louka Katseli

Environment, Energy and Climate Change: Tina Birbili

Education and Religious Affairs: Anna Diamantopoulou

Infrastructure, Transport and Networks: Dimitris Reppas

Labor and Social Security: Andreas Loverdos

Health and Social Solidarity: Mariliza Xenogiannakopoulou

Agriculture and Food: Katerina Batzeli

Justice, Transparency and Human Rights: Haris Kastanidis

Citizen's Protection: Michalis Chryssohoidis

Culture and Tourism: Pavlos Geroulanos

State Minister: Haris Pamboukis 

 
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