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“Mr. Papandreou’s father and grandfather, both prime ministers, were poor economic managers. His father Andreas founded PASOK as a tax-and-spend Socialist party. His grandfather George led a short-lived centrist government that overspent in the 1960s,” reminds the famous English magazine The Economist in a descriptive analysis, dedicated to the challenges the new Greek PM will face. “As the latest member of the dynasty to hold the job, young George has much to prove,” continued the magazine.

The Economist analyzed the pre-election strategy of the socialist leader, whose promises are mainly regarding more transparency, competition and dignity, and concludes: “Now he has the chance to execute all his promises.” The publication notes that the members of the new government are using terms, which were rarely used by Kostas Karamanlis – climate changes, competition and e-administration. The Ministry of National Economy split in two. The US-educated Luka Katzeli will take care of the investments and assimilation of European Funds and supporting the budget will be British-educated Georgios Papakonstantinou.

Right now the most important task is avoiding a chronic recession. “Fewer tourists visited this summer and shipping income is down because of a fall in trade. Shops are shutting in smart parts of Athens. Unemployment is near double digits. The budget deficit is soaring, thanks to collapsing tax revenues and a pre-election spending binge,” this is how The Economist described the Greek economy.

Despite all Papandreou promises a €3 billion packet for supporting young industries. The money will come from the owed 10 billion taxes, which the government will collect. Also the PM promised considerable increases of salaries and pensions, in order to bring to live consumer demand. “But if the deficit exceeds 10% Mr Papaconstantinou may face difficulty selling this to his European colleagues,” warns the publication.

According to the publication “few Greeks doubt the sincerity of Mr. Papandreou’s drive for “green” growth; many fear his plans will be undermined by bureaucratic inertia and corruption,” concludes The Economist. The publication quotes a former minister who says: “If you’re foreign minister(as Giorgos Papandreou has been), you’re not exposed to the reality of the Greek system.”