Changing of the guard in Greece

The 48-member cabinet is the largest in party history

By Helena Smith in Athens

A group of motivated, western-minded modernisers has assumed the reins of power in Greece in a clear bid to assuage international criticism of the outgoing government's sluggish preparations for the 2004 Olympic games.

The swearing-in of the new 48-member cabinet - the biggest ever under the governing socialist Pasok party - looked set to mark the demise of Greece's image as an anarchic, under-developed country with a laggard economy.

For the first time in the history of Pasok - which has been in power for all but three years since 1981 - old-guard traditionalists have been replaced almost entirely by zealous reformers.

After 20 years' membership in the European Union, they are determined to bring Greece, the EU's poorest partner, in line with the rest of the West.

The new government wants to smarten up Greece's image

"This new government formation marks a new era," Prime Minister Costas Simitis announced at his first cabinet meeting.

The 65-year-old leader went ahead with the overhaul after he was last week overwhelmingly re-elected as head of Pasok.

"Simitis emerged strong and confident from the socialist party congress,'' said one EU diplomat.

"This government bears his own stamp. I think we'll see it undertaking all the economic and social reforms that the prime minister so wants to forge ahead with."

Few traditionalists left

Among traditionalists, only former defence minister Akis Tsochadzopoulos - who has expressed vocal opposition to the modernisers' painful economic and social reforms - remains in office, at the helm of the Development Ministry.

Heading the reformist camp is Nikos Christodoulakis, at the newly created Economy Ministry who has won plaudits in Brussels for his policies as head of development.

Yannos Papadoniou, the architect of Greece's arduous entry into the eurozone, was made Minister of Defence. Aides say he will prioritise the streamlining of the country's excessive defence expenditure.

The well-respected foreign minister retains his post

Foreign Minister George Papandreou - who is highly respected by his European counterparts - remains in the same post, as does the popular Public Order Minister, Michalis Chrysochoidis.

Mr Simitis has placed special emphasis on Greece's handling of its preparations to host the world's most cherished sport event in 2004.

Among the new faces were four deputy ministers, including one appointed to deal exclusively with security issues and another to oversee construction of sports facilities.

No-fuss Vasso Papandreou, the former interior minister, was put in charge of the public works ministry handling Olympics projects.

Criticism

Greece has faced fierce criticism of its bungled handling of preparations for the games.

Paying a visit to the capital last month, the president of the International Olympic Committee, Jacques Rogge, chastised Athens for the delays it had clocked up in constructing sports venues.

IOC chief Rogge warned there is no time to lose

He said there was no more time to lose.

Dimitris Reppas, the outgoing government spokesman and new labour minister, said the reshuffle would "reinforce the government's desire to better organize the games."

The 11 September suicide attacks in New York and Washington have only heightened anxiety over Athens' ability to hold a peaceful games.

In 1999, Greece was second only to Columbia in the number of anti-US terrorist attacks committed on its territory.

As home of the infamous militant group November 17, Greece has long been seen as Europe's "soft underbelly" - a place where terrorists strike with impunity.

The failure of Greek authorities to apprehend any member of the deadly organisation only adds to its infamy.