Olympics prompt Greek shake-up

Greece has been accused of slow progress in preparing for the 2004 Olympics

ATHENS, Greece -- Greece Premier Costas Simitis has carried out a major cabinet reshuffle in an effort to push ahead with his country's staging of the 2004 Olympics.

The leader has created four new deputy posts, including one to deal exclusively with security measures and another to oversee construction.

Simitis' government has been accused of slow progress in preparing for the world's greatest sporting event.

International Olympic Committee officials have been pressing for an end to political uncertainty and insist Athens has no more time to lose.

Simitis has been able to take radical action this week thanks to his strong showing in recent party elections, which shored up his position in the Socialist Party.

The moves were also an attempt to boost the popularity of his ailing government, under fire for slow economic reform and the pressing need to shake-up the country's welfare system.

Key critics were removed from their posts and supporters promoted. One of Simitis' fiercest opponents, Apostolos (Akis) Tsotzahopolous was moved from minister of defence to a more minor post.

Political turmoil has bogged down efforts to overcome serious delays in getting sports venues and other projects ready for the Olympics.

Government spokesman Dimitris Reppas, said: "The government has much important work to carry out before 2004.

"This reshuffle will reinforce the government's work ... to better organise the Olympic Games."

The main switch was that of finance minister Yannos Papadoniou, who was the architect in taking Greece into the euro. He was moved to the defence ministry.

Other moves included development minister Nikos Christodoulakis taking over the newly created economy ministry, and interior minister Vasso Papandreou being given the key public works ministry involved in Olympic construction projects.

The finance and national economy ministries were merged to form the economy ministry.

George Papandreou remains as foreign minister. The Socialists have been suffering from sliding approval ratings and squabbling among senior officials who feel the party had broken from its populist welfare-state roots.

Simitis has also faced dissent over plans to streamline Greece's bloated public sector and sell-off state enterprises, including troubled Olympic Airways.

But even if Simitis manages to solidify control over the government, the Socialists still face many thorny issues to move Greece more in line with European Union partners.