Athens - Greece's newly-elected Socialist Prime Minister, George Papandreou, named foreign-trained ecnomists to the country's top ministries Tuesday in an effort to pull the country from the brink of recession. Following a landslide victory in parliamentary elections on Sunday with a strong majority, the US-born and -educated Socialist leader appointed London-trained economist Louka Katseli to head the economy ministry and Socialist party spokesperson George Papacontantinou in the finance ministry.
Faced with high youth unemployment, low budget revenues, a faltering economy and a deficit surpassing 6 per cent of GDP, both Katseli and Papacontantinou will be responsible quickly to turn the economy of the eurozone's second-poorest member around.
Katseli, 57, a Princeton graduate, has served as economic advisor to Papandreou's father, Andreas between 1993 and 1996. She has taught economics at Yale and worked for the OECD.
Her finance ministry counterpart, Papaconstantinou, 47, studied at the London School of Economics and New York University. He had served as Papandreou's advisor from 2004-2007 and party spokesperson after that.
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.
Poor state revenues forced the previous conservative 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.
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.
