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Greek PM replaces finance minister in cabinet reshuffle

(Agencies)
Updated: 2011-06-17 16:39
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Greek PM replaces finance minister in cabinet reshuffle
US Defense Secretary Robert Gates (R) chats with his Greek counterpart Evangelos Venizelos while posing for a family photo during the NATO Defense Ministerial Meetings in Brussels March 10, 2011. [Photo/Agencies]

ATHENS - Greek Prime Minister George Papandreou named Defence Minister Evangelos Venizelos as new finance minister in a reshuffle of his cabinet on Friday amid speculation of snap general elections.

Ten months since the first reshuffle of cabinet under Prime Minister George Papandreou, Greek government spokesman Yorgos Petalotis announced the composition of the new, smaller cabinet which is scheduled to be sworn in this noon and receive a parliamentary confidence vote by Wednesday.

Finance Minister George Papaconstantinou who was a key figure in efforts to exit the crisis over the past 20 months, gets the environmental protection minister portfolio from Tina Birbili who is left out of the new cabinet.

Outgoing Defence Minister Evangelos Venizelos is named new finance minister as well as deputy prime minister, next to Theodoros Pangalos.

Regarding other key portfolios, European Parliament member Stavros Lambrinidis is named foreign affairs minister, replacing Dimitris Droutsas who is left out of the new cabinet.

Regional Development and Competitiveness Minister Michalis Chrysohoidis keeps his post, assuming wider responsibilities for shipping.

Citizen Protection Minister Christos Papoutsis and Culture and Tourism Minister Pavlos Geroulanos also keep their posts, while outgoing Defence Deputy Minister Panos Beglitis is promoted to defense minister.

Outgoing Interior Minister Yannis Ragoussis takes the Infrastructure Ministry. His position is replaced by former justice minister Haris Kastanidis.

Petalotis is removed from the government spokesman post to deputy minister of justice. He is replaced by Elias Mossialos who is also named minister of state.

The announcement follows a political turmoil this week which fuelled scenarios of snap general elections and instability that could undermine further key aid from EU and International Monetary Fund lenders to avoid default risks.

The formation of the new cabinet came after inconclusive talks about a national unity coalition on Wednesday, calls for early elections from opposition parties and heavy pressure on Thursday from "dissidents" of the ruling socialist PASOK party who join the opposition, labor unions and protestors in the streets criticizing the government's economic policies.

Ahead of a crucial vote in parliament on June 28 over a new package of austerity and reform measures to secure further foreign aid to face the debt crisis, Papandreou seeks to boost the effectiveness of efforts to lead Greece out of the crisis.

 

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