Thursday, June 16, 2011

Greek finmin may lose job but austerity to stay














Greek Finance Minister George Papaconstantinou's may lose his job in a cabinet reshuffle on Thursday, but the government will stick to the austerity policies he championed to ensure continued EU/IMF aid.

Analysts said Prime Minister George Papandreou, who has been struggling to muster support even within his own party for a new 5-year campaign of tax rises, spending cuts and sell-offs of state property, was likely to get his plan passed by parliament.
But they warned that a reshuffle, which could speed up the reform process by forming a more unified government, would not quell discontent among voters.
Athens must sign off on the measures if it is to receive more aid from the European Union and IMF and avoid default.


Reuters