THE NEW Greek socialist Prime Minister, Mr Costas Simitis, held a series of meetings yesterday to decide on his cabinet. Major ministries are expected to change hands.
At least seven ministers, confidants of the former prime minister, Mr Andreas Papandreou, are expected to be replaced. Changes look certain all the way down to the boards of major state companies, banks and the state carrier, Olympic Airways.
Mr Simitis (59) received a mandate to form a government after the parliamentary party of the Pasok (Panhellenic Socialist Movement) elected him on Thursday to replace Mr Papandreou, who resigned in poor health this week. His cabinet will be sworn in on Monday.
The most striking change is likely to be at the foreign ministry where Mr Papandreou's personal friend, Mr Karolos Papoulias, looks likely to be replaced by his long rival, Mr Theodoros Pangalos, the outspoken former European Affairs minister.
Mr Simitis is likely to keep the National Economy Minister, Mr Yannos Papandoniou, and the Finance Minister, Mr Alexandros Papadopoulos, both of whom are committed to economic convergence with the EU and credited with cutting inflation to single digits for the first time since 1973.
In recent years Mr Simitis has called for more development funds, more privatisation, a realistic foreign policy in the Balkans and greater compliance with EU standards.
He enjoys the confidence of the markets and is expected to push forward the partial privatisation of the state telecommunications company and the Public Petroleum Corporation.
The Athens Stock Market welcomed Mr Simitis with a 3.73 per cent jump to close at 988.47 points up 35.5 points.
The 300 seat parliament, where Pasok has an easy majority with 170 deputies, is expected to approve the new government in a confidence vote later this month.
The pro government Greek press unanimously welcomed the election of Mr Simitis and even the less enthusiastic opposition newspapers acknowledged the new prime minister's "many attributes".
The pro Pasok daily Elefterotypia referred to "the first page of the new era". It said Mr Simitis should "impose Greece's voice on the international stage especially within the European Union".
The popular daily, Ethnos which is close to Pasok, went so far as to label the election of Mr Simitis an "historic act". The leader of the conservative opposition New Democracy, Mr Miltiade Evert, said Pasok should begin to move towards "modernisation"
The popular daily Avriani, which in recent months has lead a vicious campaign against Mr Papandreou's wife, Ms Dimitra Liani, which included publishing nude photographs of her, said Mr Simitis would disband the current pack of "crooks".
Only the communist Riozospatis' is said the election of Mr Simitis would do nothing to change the "anti popular" policy of the Pasok government.