Venizelos Reappointed to New Greek Cabinet

Wall Street Journal
November 11, 2011

Greek Prime Minister Lucas Papademos on Friday appointed a new cabinet, which will be tasked with implementing the country's latest €130 billion ($177 billion) bailout before leading the country to elections.

Mr. Papademos and his new cabinet were sworn in at a ceremony in the presidential palace, ending an 11-day political crisis in Greece that forced outgoing Premier George Papandreou to step down, rocked European markets and raised fresh questions over Greece's future in the euro zone.

The new government, which includes appointees from both of the country's two major political parties—the majority Socialists and the opposition New Democracy party—as well as the small, nationalist Laos party, opens a new chapter in Greek political history.

It marks the first time in the 37 years since the country returned to democracy in 1974—following seven years of military rule—that the country's two major parties have agreed to operate in coalition.

All but three of the 16 ministerial positions remained with the Socialist, or Pasok party, including the finance ministry to which Evangelos Venizelos was reappointed as finance minister. Mr. Venizelos will also continue as deputy prime minister of the new government.

But New Democracy also took control of two key ministries—foreign affairs and defense—while the Laos party was awarded one ministerial post, marking its first time in government.

"This government represents 85%-plus of the Greek electorate," said Anthony Livanios, an independent political analyst. "It is the first real grand coalition in Greek history since the restoration of democracy."

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