Greek PM reshuffle plan in doubt

ATHENS – A string of parliamentary resignations yesterday threatened to thwart Greek Prime Minister George Papandreou’s plan to reshuffle his cabinet and pass new austerity measures needed to save Greece from default.

The political turmoil raised uncertainty over the Socialist cabinet’s five-year plan for tax hikes, spending cuts and state property selloffs demanded by its bailout lenders, spooking investors who fear the problems could infect global markets.The reshuffle reflects the unpopularity of the austerity measures and follows the failure of talks over a unity government on Wednesday that drew disappointment from European Union officials who have appealed for Greece’s political elite to unite behind the belt-tightening.Analysts said it was increasingly unclear whether Papandreou would be able to form a new governing team and get the measures approved amid the political chaos, which follows nationwide strikes and violent protests in Athens on Wednesday. – Nampa-Reuters