Athens - Greece's newly-elected Socialist Prime Minister, George Papandreou, began the major task of putting together a cabinet on Monday in an effort to pull the country from the brink of recession. Faced with high unemployment, low budget revenues and a faltering economy, Papandreou will need to make appropriate appointments soon to the foreign, finance and economy ministries.
Media speculation is growing that the US-born and educated Papandrou may even take over the post of foreign ministry himself in a bid to ensure that the country gets back on track.
With more than 99 per cent of Sunday's vote counted, the Socialists are set to be governing with a comfortable majority of 160 seats in the 300-seat parliament.
The elections - which pitted the heirs of two of the most powerful Greek political dynasties, Papandreou against Conservative Prime Minister Costas Karamanlis - were seen as critical for implementing reforms needed in the eurozone's second poorest member.
"We stand united, facing the big responsibility to change our country into a nation of justice, solidarity, humanity and green development," Papandreou told cheering supporters.
Papandreou's surname may be reminiscent of old times, being the son and grandson of two former prime ministers. But in the five years he has headed the main opposition he has fought hard for the radical reform of the party.
With many Greeks sceptical of a party whose old guard had been tainted by allegations of scandals and complacency in the past, Papandreou has pledged to bring transparency into Greek politics.
The Socialists will have to deal with a faltering economy after years of considerable growth, as well as high unemployment and a budget deficit exceeding 6 per cent of GDP.
Panagiotis Patrakis, an economist and professor at the University of Athens, said improving the state of public finances is the primary challenge of the next government, as is taking all necessary measures to inflate economic activity.
The Socialist PASOK party has promised a new approach to the economic crisis, promising a 3-billion-euro stimulus package, and proposing heavier taxing of the rich and helping the poor.
In contrast, Conservative leader Costas Karamanlis had called for two years of tough reforms such as public sector wage freezes.
Poor state revenues forced the government to borrow 52 billion euros so far this year in order to finance a widening budget deficit, expected to exceed 8 per cent of gross domestic product.
Opinion polls over the past few months indicated Greeks had grown fed up with five years of conservative rule that began with high hopes to save the faltering economy but ended with cases of scandals and corruption.
"I feel like this is a new start - that finally we can bring this country forward like other countries in Europe," said 25-year-old hairdresser Georgia Papadaki.
Experts say attention will now be on whether Papandreou will appoint a new generation of talented younger economists and environmentalists to help run the country rather than the older generation of diehard socialists.
During his election campaign, Papandreou announced a 100-day plan to bring five draft bills to parliament aimed at helping small businesses. He called for above-inflation pay rises and a reformed tax system that will put a heavier burden on the rich.
He also vowed to keep down the bureaucracy while he creates new ministries for the economy, the environment and citizens' protection. He said he would reduce the current 16 ministries to less than 15, (including the new ministries), indicating his intention to consolidate other branches of government.
