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Greece election: PM Samaras to reveal new cabinet Greece election: PM Samaras announces his cabinet
(about 2 hours later)
Greek Prime Minister Antonis Samaras is to reveal his new cabinet amid speculation about how effective his government will be. Greek Prime Minister Antonis Samaras has announced his new cabinet, which is dominated by MPs from his conservative New Democracy party.
The two leftist parties which have allied with Mr Samaras's New Democracy conservatives have refused to allow their MPs to join the cabinet. Vassilis Rapanos, the chairman of the National Bank of Greece, has been given the key post of finance minister.
The man tipped for finance minister, Vassilis Rapanos, is current chairman of the National Bank of Greece. The socialist Pasok and Democratic Left parties have two party officials in the cabinet, but have barred their MPs from taking part.
Eurozone finance ministers are to discuss Greece at talks in Luxembourg. It is believed they may not want to be associated with austerity measures.
Mr Samaras is holding a further round of talks with the leaders of the other two parties before the cabinet line-up is revealed. The BBC's Mark Lowen in Athens says the decision of New Democracy's coalition partners not to participate fully in the cabinet does not bode well for the effectiveness of the new government.
"We expect the cabinet to be announced after the meeting," a New Democracy source told AFP news agency. Old faces
German Chancellor Angela Merkel has reportedly congratulated Mr Samaras in a letter, saying she looks forward to co-operatiing with him. New finance minister Mr Rapanos, 65, is a former economics professor who served in the economy ministry when Greece joined the euro in 2001.
"You're taking over country at difficult time," she wrote, as quoted by Greece's Skai TV. "We all have expectations of your government." Some reports suggest he is seen as being close to Pasok.
'New ministries' New Democracy's deputy leader Dimitris Avramopoulos has taken the post of foreign minister.
Mr Samaras is meeting Evangelos Venizelos, leader of the socialist party Pasok, and Democratic Left chief Fotis Kouvelis.
One of the sticking points in forming the government has been the composition of the cabinet. Some former Pasok ministers wanted key posts but the party leader decided that none of his MPs should take cabinet positions.One of the sticking points in forming the government has been the composition of the cabinet. Some former Pasok ministers wanted key posts but the party leader decided that none of his MPs should take cabinet positions.
The third coalition member, Democratic Left, also kept its MPs out. Why? Clearly to avoid association with unpopular austerity measures to come. It does not bode well for the future strength and solidarity of the coalition. But government sources say all three parties have signed an agreement to support the coalition fully, even without representation in cabinet.The third coalition member, Democratic Left, also kept its MPs out. Why? Clearly to avoid association with unpopular austerity measures to come. It does not bode well for the future strength and solidarity of the coalition. But government sources say all three parties have signed an agreement to support the coalition fully, even without representation in cabinet.
The first test comes today at a eurozone finance ministers' meeting in Luxembourg, when Greece will request that some bailout terms be renegotiated. That may receive a cool response from EU members wary of letting Greece deviate from cost-cutting. But if Athens fails to win significant concessions in the weeks ahead, it would be a major blow for the government, prematurely ending any honeymoon period.The first test comes today at a eurozone finance ministers' meeting in Luxembourg, when Greece will request that some bailout terms be renegotiated. That may receive a cool response from EU members wary of letting Greece deviate from cost-cutting. But if Athens fails to win significant concessions in the weeks ahead, it would be a major blow for the government, prematurely ending any honeymoon period.
Can new government survive?Can new government survive?
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. The party 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 will have a majority of 29.
Mr Samaras became Greece's fourth prime minister in eight months at a brief ceremony at the presidential palace in Athens on Wednesday.Mr Samaras became Greece's fourth prime minister in eight months at a brief ceremony at the presidential palace in Athens on Wednesday.
Greek media report that the number of posts in the new cabinet has been slashed. German Chancellor Angela Merkel has reportedly congratulated Mr Samaras in a letter, saying she looks forward to co-operating with him.
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. "You're taking over the country at a difficult time," she wrote, as quoted by Greece's Skai TV. "We all have expectations of your government."
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.
People in Athens who spoke to Reuters news agency were doubtful the new government could improve the Greek situation.People in Athens who spoke to Reuters news agency were doubtful the new government could improve the Greek situation.
"I don't have anything against [Samaras] but I believe that all the old politicians, like Venizelos and Samaras, should leave and something different should happen so we can have someone new who has never been elected before so that maybe something might change in our situation," said Danae, a 46-year-old kindergarten teacher. "I don't have anything against [Samaras] but I believe that all the old politicians, like Venizelos and Samaras, should leave and something different should happen so we can have someone new," said Danae, a 46-year-old kindergarten teacher.
"Otherwise, I don't think anything will happen.""Otherwise, I don't think anything will happen."
Bailout 'off track'Bailout 'off track'
Greece will be represented at a eurozone finance ministers meeting in Luxembourg by the outgoing Greek Finance Minister George Zanias.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. 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.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.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.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.Greece's second bailout is "totally off track, months behind schedule", Thomas Wieser, head of the key Euro Working Group, told AFP.
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".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".