New finance chief

Greek Prime Minister George Papandreou reshuffled his cabinet Friday due to the ongoing financial crisis in the Mediterranean country, and arguably the most important decision was appointing a new finance minister.

The Greek leader settled on a political heavyweight and his biggest party rival, Evangelos Venizelos.

There is hardly a ministerial position Venizelos has not yet held. Since the early 1990s, he has been in charge of a number of ministerial portfolios -- communications, transportation, justice, development, and culture. Until just a few days ago, he was Greece's defense minister.

Since Friday he has had what the Wall Street Journal described as the "worst job in the world."

On his departure from the defense department, Venizelos said: "Today I am leaving the defense department to serve in the real war."

In 2007 he fought against his rival George Papandreou for the chairmanship of their party, the Panhellenic Socialist Movement (PASOK), but eventually conceded the contest.

Papandreou under pressure

With the cabinet reshuffle Papandreou was able to stifle some dissent within his party even though out on the streets, Greeks continue to express their frustration with the austerity measures put in place to keep the country solvent.

Last week thousands of citizens protested wage reductions, tax hikes and price increases.

Venizelos said PASOK must seek a dialogue with the protesters on the streets and society as a whole.

A native of Thessaloniki and top constitutional expert, Venizelos studied in Paris, speaks French fluently and should be well-positioned to work at the EU level.

Greek newspapers said he was performing like a "tsar," bringing new energy to his office even on his first day. He had already begun the work at the ministry of finance with his deputies and the prime minister before the oath of office was administered.

Party split

Venizelos has said one of his goals is to unite the socialists, who are split between older, more experienced members and members close to Papandreou. In the past week, several PASOK deputies resigned their seats.

Still, there is probably not much Venizelos can do differently than his predecessor, George Papaconstantinou, who ended up taking the blame for the austerity program.

Lenders are demanding Greece carry out further economic reforms in order to release the fifth installment of the first rescue package, but also to put together a new package, which Athens still needs.

The conservative opposition and some media commentators have expressed doubts about Venizelos. Some have compared him to the British comedian Benny Hill, an allusion to the new finance minister's powerful stature and affable nature.

But it might well be Papandreou's hope that this affable nature can connect with angry people on the street.

Author: Daphne Grathwohl (sjt)
Editor: Dirk Eckert / Kyle James