Tuesday, June 14, 2011

Greek PM Under Pressure to Reshuffle Cabinet





















Greek Prime Minister George Papandreou faces growing pressure from his Socialist Party to reshuffle his cabinet in an attempt to defuse public anger over another round of spending cuts.


Two senior officials—a senior Socialist Party leader and a cabinet minister—said the government's survival could depend on reseating top cabinet posts after the parliament votes through the new austerity measures at the end of June.

Public protests over deep government spending cuts has been growing as Greece struggles through the worst economic crisis in the country's recent history.

Government insiders worry about eroding public support for reforms. In a nationwide poll published Sunday by the Kathimerini newspaper, Mr. Papandreou's Socialist PASOK Party trails the conservative opposition New Democracy Party for the first time since the 2009 elections.

Pressure to replace Finance Minister George Papaconstantinou is particularly strong, these officials said. If the cabinet were reshuffled, Mr. Papaconstantinou would have to be offered another prominent cabinet post or leave government. They said Lucas Papademos, a former European Central Bank vice president, has been raised as a possible replacement to take on one of the toughest jobs in Europe.







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WSJ