The approach made to the opposition leader during the week to form a government of national unity has failed so PM Papandreou moved swiftly by changing his own the government guard. Evangellos Venizellos, constant critic of the PM has reluctantly agreed to serve in the position of Minister for the economy a job that no one would have wanted under the circumstances. He agreed this move on condition that he will also become vice President of the party. The entire government has now been changed with my favorite, Droutsas, moving to bcome a Euro MP and no longer the foreign Minister (shame..)
The markets have seen these changes as a sign that the PASOK government (Socialist) will go ahead with stage 2 of the measures that will mean a further attack on working people, the privatisation of most that moves and the huge reduction in the public sector plus a further attack on the value of pensions.
The two traditional allies of Greece, France and Germany, welcomed the move. The British government, as always, remains in the background with very little or no active involvement.
In the meantime the extensive protests that have been seen on the streets of major cities in Greece over the last 22 days will be continuing with the TUs promising more protests.