Greek Prime Minister Names Rival to Finance Ministry

Bond markets may or may not buy it; they spiked before the announcement, with the rate on 10-year bonds hitting 18.9%, a record, and the cost to insure against default also hit a record. However, they did retreat after the news. The Greek market's initial reaction was positive, as Papandreou also ditched his environment and labor ministers; they were standing in the way of the bailout as they protested both the privatization measures and the loosening of regulations governing the labor market. The Athens stock market index rose 2% and bank shares added up to 4%.

In a statement, UBS analyst Alexander Kyrtsis said of the change, "Venizelos is politically powerful and that might bode well for the implementation of fiscal consolidation, even though he has no track record in financial matters." According to the report,however,most economists doubt Greece will be able to fight its way back from the brink of default; its debt totals 150% of the nation's annual economic output.