Analysts have been highlighting the scale of the challenges facing George Papandreou and the incoming socialist government.
Euronews got the views of Constantino Kallergis, the Brussels correspondent of the Greek daily. Kathimerini. He told us that the new government would have to balance spending to stimulate the economy with the EU’s tough budgetary rules. He said: “The main point I think is, how will Brussels react? And Brussels officially expects the big deficit to be under 3 percent by the end of next year. Of course everybody knows that that is entirely impossible but what remains to be seen is how Brussels will react to the general European approach to the crisis. We have France with mounting deficits and other countries. So I think it is quite clear that the stability pact itself has, to a certain extent, been overtaken by the developments of the crisis. It is fair to say that the new government in Athens will have a certain period in which to adjust its policies and see how it can offer some stimulus to the economy without going entirely off the tracks in terms of basic budgetary discipline.”