Thursday, June 21, 2012

Greece election: PM Samaras to reveal new cabinet

Greek Prime Minister Antonis Samaras (centre) chairs a meeting in the Greek parliament, 20 June

Greek Prime Minister Antonis Samaras is to reveal his new cabinet amid speculation about how effective his government will be.

The two leftist parties which have allied with Mr Samaras's New Democracy conservatives have refused to allow their MPs to join the cabinet.

The man tipped for finance minister, Vassilis Rapanos, is current chairman of the National Bank of Greece.

Eurozone finance ministers are to discuss Greece at talks in Luxembourg.

Greek media report that the number of cabinet posts has been slashed.

The new cabinet is expected to consist of 16 ministers and 12 deputy ministers, compared to its 49-strong predecessor, the Greek newspaper Kathimerini reports.

However, two new ministries, for tourism and for the merchant marine, are being created out of the existing development ministry, the paper adds.

Tourism and shipping are major sources of revenue for the Greek economy.

Mr Samaras became Greece's fourth prime minister in eight months at a brief ceremony at the presidential palace in Athens on Wednesday.

He has been backed by the socialist party Pasok and by a smaller party, Democratic Left.

New Democracy won 129 seats in Greece's 300-seat parliament on Sunday, including a 50-seat bonus for coming first in the election. Along with Pasok and Democratic Left, the new government would have a majority of 29.

Greece will be represented at a eurozone finance ministers meeting in Luxembourg by the outgoing Greek Finance Minister George Zanias.

The new minister, Mr Rapanos, is not expected to be sworn in until Saturday.

A top bailout official has warned eurozone states that they must tell Greece to make fresh budget cuts or raise more taxes, or face having to pay themselves.

The country got an initial EU-IMF package worth 110bn euros (£89bn; $138bn) in 2010, then a follow-up this year worth 130bn euros.

It has also had 107bn euros of debt, held by private investors, written off.

Greece's second bailout is "totally off track, months behind schedule", Thomas Wieser, head of the key Euro Working Group, told AFP news agency.

Either you "stick to the fiscal targets and then you need additional measures" from Greece, he said, or you change deadlines, in which case "you need extra money".



Source & Image : BBC

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