Papandreou Shuffles Greek Cabinet; Papaconstantinou Keeps Finance Ministry
George Papandreou, Greece's prime minister
Kostas Tsironis/Bloomberg
George Papandreou, Greece's prime minister.
George Papandreou, Greece's prime minister. Photographer: Kostas Tsironis/Bloomberg
Greek Prime Minister George Papandreou reshuffled his Cabinet for the first time, demoting a key minister in charge of growth. Finance Minister George Papaconstantinou retained his post.
Michalis Chrisochoides, who until now headed the police ministry, will replace Louka Katseli as head of a revamped economy and competitiveness ministry, government spokesman George Petalotis said today in an e-mailed statement. Katseli will head a new employment and social security ministry, while Andreas Loverdos, who shepherded this year’s pension system reform, was named head of the health ministry before a planned overhaul to the state health system.
Papandreou is under pressure to revive growth and boost jobs in an economy forecast to shrink 4 percent this year while reducing the European Union’s second-biggest budget gap. The government is implementing a three-year deficit-cutting plan in return for 110 billion-euros ($126 billion) of emergency loans from the EU and International Monetary Fund.
The Greek economy declined for a seventh quarter in the three months to June as wage and pension cuts and tax increases damped spending. The country is in a second year of recession as key industries such as tourism and shipping are hurt by the global crisis and austerity measures depress growth.
In other Cabinet appointments, Yiannis Diamantides will head a new ministry for maritime, fishing and island affairs. Costas Skandalidis was appointed agriculture minister, replacing Katerina Batzeli. Haris Pamboukis was named minister in charge of investments while Papandreou relinquished his post of foreign minister to his deputy, Dimitris Droutsas.
To contact the reporter on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net
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