Greek cabinet shuffled

The Greek Prime Minister, Mr Costas Simitis, boosted by his solid re-election as leader of his ruling party, the Panhellenic …

The Greek Prime Minister, Mr Costas Simitis, boosted by his solid re-election as leader of his ruling party, the Panhellenic Socialist Movement (Pasok), shuffled his cabinet yesterday.

Mr George Papandreou, the architect of closer ties with Turkey, remains Foreign Minister, as expected. But the prime minister's main rival within the party, Mr Akis Tsohatzopoulos, has been moved from the Defence Ministry to development.

Mr Simitis gave new portfolios to many long-standing ministers and appointed a number of deputy ministers with responsibilities for the Athens Olympic Games, recognising that Greece needs to step up preparations for the 2004 Games.

The long-serving Finance Minister, Mr Yannos Papandoniou, has been moved to the Defence Ministry where he has demanded cuts in the face of resistance from Mr Tsohatzopoulos. Mr Papandoniou was replaced by the Development Minister, Mr Nikos Christodoulakis.

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Mr Papantoniou is considered the architect of economic reforms that allowed Greece to join the euro-zone on January 1st, and placed the country firmly on the path of economic stability in 1994 after years of economic mismanagement. Mr Christodoulakis is an economist who favours free-market reforms and as a deputy to Mr Papandoniou was a part of the reformist team that brought Greece into the euro-zone.

Other key appointments include the Press Minister, Mr Dimitris Reppas, who becomes Labour Minister and takes charge of the social security reform, which has hit the government's standing in recent opinion polls.

The Interior Minister, Dr Vasso Papandreou, becomes Environment and Public Works Minister, with responsibility for Olympic Games projects. She replaces Mr Costas Laliotis, who was elected party chairman earlier this week. However, Mr Simitis stopped short of appointing an Olympics minister.