Against a backdrop of violent anti-austerity protests Greek Prime Minister George Papandreou is planning a major government reshuffle as he struggles to keep his party in line over the conditions of the EU/IMF bailout. He will then seek a confidence vote on Tuesday.
Papandreou is desperate to push through an austerity package to avoid default on a 110 billion euro EU/IMF bailout loan.
It has emerged that a prominent member of Papandreou’s Socialist party has resigned his seat in protest over the slow pace of reforms in the cash-strapped country.
Giorgos Kyrtsos, editor-in-chief of ‘City Press’ in Athens said: “Papandreou has ended cooperation with the main opposition party. He said he wants a broad reshuffle and the government needs a new face to deal with the pressing social and economic problems.”
The international lenders have demanded a new five-year austerity-plan as a condition, if the next 12 billion euro instalment is to be transferred.
In yet another furious protest tens of thousands poured onto the streets of Athens on Wednesday to demonstrate against the bailout deal.