Resignations hit Greek reshuffle plan
A string of parliamentary resignations on Thursday threatened to thwart Greek Prime Minister George Papandreou’s plan to reshuffle his cabinet and pass austerity measures needed to save the nation from default.
The political turmoil raised uncertainty over the Socialist cabinet’s five-year plan for tax hikes, spending cuts and state property selloffs demanded by its bailout lenders, spooking investors who fear the problems will infect global markets.
Analysts said it was increasingly unclear whether Papandreou would be able to form a new governing team and get the deeply unpopular measures approved amid the political chaos, which follows nationwide strikes and violent protests in Athens on Wednesday.
“It will be very hard now to find good people to form a government now. They don’t trust (Papandreou) after all the flip-flops he has made,” said former finance minister Stefanos Manos. “Who will make privatisations now in all this turmoil?”
