#Greek Prime Minister Purges Left-Wing Devils to Bolster Divided Government

Meanwhile in Germany, Merkel pushes through support for unloved bailout despite repeated suggestions by her finance minister that Greece should quit the Eurozone.

Geoffrey Smith writes: Greek Prime Minister Alexis Tsipras sacked some prominent left-wing rebels from his government Friday in a cabinet reshuffle following a party revolt against a tough new bailout deal adopted this week.

The 40 year-old prime minister dismissed Energy Minister Panagiotis Lafazanis and two deputy ministers after 39 Syriza hardline lawmakers refused to back the government over the measures, which were demanded by Eurozone partners as a pre-condition for beginning talks over a new bailout.

The main economic ministries remain unchanged, with Euclid Tsakalotos remaining in place at the finance ministry and George Stathakis staying at the economy ministry.

But Labor Minister Panos Skourletis, one of Tsipras’ closest allies, will replace Lafazanis in the key energy portfolio, where he will be responsible for sensitive privatization dossiers. Administrative Reforms Minister George Katrougalos will take over at the labor ministry.

The reshuffle had been expected ever since the party rebellion left Tsipras dependent on the votes of pro-European opposition parties to pass the bailout deal but it is not likely to change the uncertain overall outlook for the government.

Former Deputy Finance Minister Nadia Valavani, another bailout opponent who resigned earlier this week before the vote, was replaced by Tryfon Alexiadis, a leading member of Greece’s tax experts’ union.

The new ministers are expected to be sworn in on Saturday.

The reform package, including pension adjustments, value-added tax hikes, an overhaul of collective-bargaining rules and tight limits on public spending, was approved with 229 votes in the 300-seat chamber in the early hours of Thursday, with only the Neo-Nazi Golden Dawn, the Communists, and the Syriza dissidents voting against….(read more)

Fortune

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