ATHENS - Greek Prime Minister George Papandreou has appointed a new government Friday with the entry of the tenor Socialist Evangelos Venizelos to the key post of finance minister, responsible for taking head on the Greek crisis that threatens to spread throughout the euro area.
The first challenge for the new government will be to adopt by the end of a bill of austerity, hotly contested in the street and part of the basis of the socialist party (PASOK) to power, but deemed essential by the country's creditors to release a second wave of financial assistance to Greece, on the edge of default.
The appointment of the new government at least temporarily suspend a political crisis that threatened to Greece in the Socialist parliamentary majority, part of which is opposed to the austerity measures.
The White House acknowledged Wednesday night "determination" of Mr. Papandreou to take "tough measures to guide Greece through these financial problems."
The reworking of Mr. Papandreou, the second since his election to power in 2009, comes the day when the cacophony and the divisions that have prevailed for several weeks between European creditors on how to help Greece, finally seem to dissipate.
Friday German Chancellor Angela Merkel and French President Nicolas Sarkozy showed their understanding for a quick solution to the problem of the Greek debt, with voluntary participation of private creditors, while the risk of default of Greece fears a reaction chain across the euro area.
Germany seemed to agree with the solution advocated by the European Central Bank (ECB), European Commission and France, including private participation, that is to say banks, but only on a voluntary basis .
For his part, President of the European Commission José Manuel Barroso wished the vote of confidence from Parliament to the new Greek government, requested by the Prime Minister to intervene "quickly".
In fact, the new government was sworn in Friday, is expected Tuesday to receive a vote of confidence from Parliament after a debate that should start Sunday.
M. Venizelos, the new finance minister, who has the difficult task of implementing the reforms demanded by the country's creditors, where he became the speaker, is a constitutionalist, 54, who was an unsuccessful rival of Prime Minister George Papandreou for the leadership of PASOK.
He was also appointed deputy prime minister.
Until now of Defense, Mr. Venizelos replaces technocrat George Papaconstantinou, first architect of international support to Greece and the loan of 110 billion euros given in 2010 in exchange for a first austerity plan.
During the handover, Mr. Venizelos expressed his desire to "continue" the austerity policy while calling for "political consensus" and "mobilization" general rallying opposition and society.
Having served in various ministries in previous Socialist governments, Mr. Venizelos seems to be able to appease the social discontent, at least initially analysts said, while trying to implement the recovery plan for the economy provides for a reorganization of the civil service and higher taxes.
But political analyst Ilias Nikolakopoulos "doubt of its ability to advance real reforms" that Greece needed."We have ten days to see how he will react before the closure of discussions in Europe," he added.
The first challenge for the new government will be to adopt by the end of a bill of austerity, hotly contested in the street and part of the basis of the socialist party (PASOK) to power, but deemed essential by the country's creditors to release a second wave of financial assistance to Greece, on the edge of default.
The appointment of the new government at least temporarily suspend a political crisis that threatened to Greece in the Socialist parliamentary majority, part of which is opposed to the austerity measures.
The White House acknowledged Wednesday night "determination" of Mr. Papandreou to take "tough measures to guide Greece through these financial problems."
The reworking of Mr. Papandreou, the second since his election to power in 2009, comes the day when the cacophony and the divisions that have prevailed for several weeks between European creditors on how to help Greece, finally seem to dissipate.
Friday German Chancellor Angela Merkel and French President Nicolas Sarkozy showed their understanding for a quick solution to the problem of the Greek debt, with voluntary participation of private creditors, while the risk of default of Greece fears a reaction chain across the euro area.
Germany seemed to agree with the solution advocated by the European Central Bank (ECB), European Commission and France, including private participation, that is to say banks, but only on a voluntary basis .
For his part, President of the European Commission José Manuel Barroso wished the vote of confidence from Parliament to the new Greek government, requested by the Prime Minister to intervene "quickly".
In fact, the new government was sworn in Friday, is expected Tuesday to receive a vote of confidence from Parliament after a debate that should start Sunday.
M. Venizelos, the new finance minister, who has the difficult task of implementing the reforms demanded by the country's creditors, where he became the speaker, is a constitutionalist, 54, who was an unsuccessful rival of Prime Minister George Papandreou for the leadership of PASOK.
He was also appointed deputy prime minister.
Until now of Defense, Mr. Venizelos replaces technocrat George Papaconstantinou, first architect of international support to Greece and the loan of 110 billion euros given in 2010 in exchange for a first austerity plan.
During the handover, Mr. Venizelos expressed his desire to "continue" the austerity policy while calling for "political consensus" and "mobilization" general rallying opposition and society.
Having served in various ministries in previous Socialist governments, Mr. Venizelos seems to be able to appease the social discontent, at least initially analysts said, while trying to implement the recovery plan for the economy provides for a reorganization of the civil service and higher taxes.
But political analyst Ilias Nikolakopoulos "doubt of its ability to advance real reforms" that Greece needed."We have ten days to see how he will react before the closure of discussions in Europe," he added.
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