Greek PM dumps finance chief in bid to survive

Greek Prime Minister George Papandreou appointed a new finance minister on Friday in a crisis reshuffle to try to push through harsh economic reforms and avoid a default that could cause global economic turmoil.

Papandreou picked outgoing Defense Minister Evangelos Venizelos as new finance minister, jettisoning George Papaconstantinou, architect of a belt-tightening program that has stoked violent unrest and a revolt in his Socialist Party.

The move seemed likely to buy time politically for the embattled prime minister but did little to dilute skepticism that Greece would be able to implement a new round of deeply painful reforms. The European Union and International Monetary Fund have made a new bailout for Greece, estimated at 120 billion euros, conditional on Papandreou's five-year package of cuts and tax hikes worth 28 billion euros (USD39.59 billion).

The political upheaval and three-weeks of protests have pounded markets and drawn criticism from other EU states, where policymakers have dithered over how best to keep funding Greece and forestall a disastrous "credit event."

Papaconstantinou becomes environment minister in the reshuffle. The new cabinet was sworn in by Orthodox priests in traditional robes on Friday and a confidence vote is due by Tuesday night.

Rather than giving new impetus to the reforms, analysts said, the reshuffle was aimed primarily at quelling dissent in the Socialist Party by moving the unpopular Papaconstantinou and appointing the prime minister's main party rival Venizelos.

The prime minister also removed the labor and environment ministers who had resisted some of the economic reforms, among 15 ministers or deputy ministers who were dumped.