ANALYSIS: Greece mulls Italian model of government

By Christine Pirovolakis and Nick Rigillo Feb 13, 2012, 14:31 GMT

Athens - As cleanup crews swept rubble from the streets of Athens and firefighters extinguished the last remaining flames from buildings torched by rioters, Greek decision-makers woke up Monday wondering: 'What now?'

The answer, according to a growing number of analysts, may be found in Rome.

Prime Minister Lucas Papademos 'has been left with no other choice but to follow the Italian model,' Yannis Monogios, a researcher at the Centre of Planning and Economic Research, told dpa.

In November, a discredited Silvio Berlusconi succumbed to market pressure and resigned, paving the way for a technocratic administration headed by Mario Monti, an economist and former European Union commissioner.

Monti took over the Finance Ministry and proceeded to appoint a slimmed-down cabinet of just 18 members - five of whom without portfolio - all free of party affiliation.

Since then, the premier has pushed through a series of long-overdue economic reforms, immediately earning the respect of the EU's political drivers, German Chancellor Angela Merkel and French President Nicolas Sarkozy.

The professorial Monti was also praised by US President Barack Obama during a recent visit to Washington.

As an unelected prime minister, Monti has been able to push through unpopular reforms precisely because he need not worry about re-election.

Could a similar solution work in Greece?

Many observers in Europe have began losing faith in the ability of the Greek government to push through the kind of harsh reforms needed to save the country from bankruptcy.

Speculation of an imminent Greek cabinet reshuffle immediately mounted after Sunday night's vote, which saw the coalition government lose six of its ministers and deputy ministers as well as the support from the junior coalition partner, LAOS party.

'The political road map is now open - and for the first time in modern Greek history nothing is certain anymore and the political spectrum as we knew it is now over,' a close aide to Socialist PASOK leader George Papandreou told dpa.

Like Monti, the government of Papademos is supported by the country's main parties, from both the left and the right.

Unlike in Italy, however, the Greek government is still strictly political, and its members deeply concerned that they might be voted out of power.

According to daily newspaper Kathimerini, the extent of the shake-up will very much depend on the timing of the election, now expected to take place in April.

'So many deputies from (both) the socialist and conservative party no longer support the polices he now has to implement, so Papademos will take this as an ideal opportunity to hold a cabinet reshuffle and form a leaner and more flexible administration,' the newspaper wrote.

The reshuffle could take place as soon as this week, ahead of a crucial meeting in Brussels on Wednesday, in which eurozone finance ministers will decide on whether to finally provide Greece with 130 billion euros (171 billion dollars) in emergency loans.

In a landmark parliamentary vote Sunday, lawmakers approved a new round of austerity measures in a 199-74 vote.

However, both the socialists and the conservatives emerged seriously damaged from the vote, as 43 of their deputies rejected the terms of the deal, in the face of massive anger on the streets of Athens.

The vote was preceded by violent clashes, the worst Greece has seen in decades. Rioters set fire to buildings and looted their way through dozens of shops.

'We have tremendous damage,' said Athens Mayor Giorgos Kaminis, as he stood outside a historic building that once housed a pre-World War II theatre. It was scorched as hooded anarchists rampaged through the city late Sunday.

'My shoe business, which has been in my family since 1978, has been burnt to the ground because rioters targeted a bank which is located next door,' said an elderly man from the ruins of his store in the historic section of Athens. 'They took most of my merchandise,' he added.

Across the Adriatic in Italy, Monti has succeeded in pushing through unpopular reforms while avoiding social strife. Papademos, who is also a trained economist, may well be considering following his example.