Reshuffle ahead as DIMAR quits

Having dodged threat of early elections following withdrawal of junior partner, PM plans cabinet shake-up

Prime Minister Antonis Samaras was said to be planning a sweeping cabinet reshuffle in the coming days following the withdrawal from the coalition yesterday of junior partner Democratic Left (DIMAR) which vehemently opposed Samaras’s decision to shut down state broadcaster ERT last week.

DIMAR leader Fotis Kouvelis withdrew his two ministers – Administrative Reform Minister Antonis Manitakis and Justice Minister Antonis Roupakiotis – from the government following the breakdown of a third round of coalition talks aimed at mending the impasse over ERT. After a stormy session of his parliamentary group, Kouvelis indicated that his party would not oppose the government’s reform drive and would support legislation deemed to be in line with it. “DIMAR will be active, but it will also oppose arbitrary acts, despotism and policies that promote party choices and do not contribute toward the recovery of the country, society and democratic institutions,” he said.

Smarting from Kouvelis’s departure, the government nevertheless dodged the potentially destabilizing threat of early elections. According to sources, Samaras was “surprised and disappointed” by Kouvelis’s decision to pull out, which came just a day after the three party leaders reportedly reached a basic agreement on how to solve the ERT dispute.

Samaras was reportedly in contact with PASOK leader Evangelos Venizelos yesterday to discuss the next steps of the new two-party administration, whose majority has dwindled to 153 in the 300-seat Parliament.

Venizelos reportedly wants a review of the coalition’s policy priorities before a reshuffle and was expected to discuss the issue with Samaras over the weekend, as well as possible candidates for a reshuffle which could happen as early as Monday.

who yesterday quit as justice minister, is seen waiting before a meeting of his Democratic Left party lawmakers and its leader Fotis Kouvelis. The party yesterday said it was leaving Greece’s coalition government.

According to sources, the ratio of New Democracy to PASOK ministers in the new cabinet will be 2:1. There were rumors that Venizelos would assume the post of foreign minister, currently held by Dimitris Avramopoulos, as well as the position of deputy prime minister. Among those expected to keep their posts are Development Minister Costis Hatzidakis, Public Order Minister Nikos Dendias, Tourism Minister Olga Kefaloyianni and Education Minister Constantinos Arvanitopoulos. ND deputies Kyriakos Mit- sotakis and Makis Voridis are also rumored to be candidates for posts.

Sources close to Samaras said a reshuffle could be a chance to boost the government’s efficiency. Troika envoys have indicated that only half of the 300 measures that are supposed to be implemented by the end of June have been enforced.

In ERT’s old headquarters, north of Athens, dismissed staff continued with their pirate broadcast yesterday despite a statement issued by the Finance Ministry calling on them to “evacuate the premises... to allow for the unhindered and immediate implementation of the Council of State’s decision,” a reference to the court’s ruling approving ERT’s closure but called for its signal to be restored. The statement said authorities were drafting plans to recruit 2,000 people to run a transitional broadcast service but did not specify the length of the contracts. The union representing sacked workers responded defiantly to the ministry’s order, saying staff would stay put. The fact that Greece’s fragile government appeared to have survived a political crisis that led to the withdrawal of its junior partner was reportedly a source of cautious relief yesterday to European officials meeting in Luxembourg who however stressed that the implementation of Greece’s reform program, and the continued release of rescue loans, was in the hands of Greek government officials.

“It is very important to stabilize the political situation in Greece immediately and really concentrate all energy on the implementation of the program,” European Monetary and Economic Affairs Commissioner Olli Rehn told reporters yesterday. He said troika inspectors were due to return to Athens in early July, adding that the review could be completed shortly after, “depending on Greece.” Eurogroup President Jeroen Dijsselbloem expressed similar cautious optimism after a Luxembourg summit where Finance Minister Yannis Stournaras was said to have been questioned by his eurozone peers about Greece’s political upheaval. Stournaras reportedly described it as “turbulence,” saying, “It will pass.” He is said to have had one-on-one talks with his German counterpart Wolfgang Schaeuble, who is to visit Athens in the second half of July.

A spokesman for the International Monetary Fund, one of Greece’s three international creditors, also pressed Greek authorities “to deliver on the program quickly.” “If the review is concluded by the end of July, as expected, no financing problems will arise because the program is financed till end-July 2014,” Gerry Rice said in a statement issued late on Thursday.