Greek PM Tsipras reshuffles cabinet in bid to speed up reforms

Greek Prime Minister Alexis Tsipras attends a parliamentary session before a vote on tax and pension reforms in Athens, Greece, May 8, 2016. REUTERS/Alkis Konstantinidis/File Photo

By Renee Maltezou and Lefteris Papadimas ATHENS (Reuters) - Greek Prime Minister Alexis Tsipras reshuffled his cabinet late on Friday in a bid to speed up reforms Athens has agreed to implement under its latest international bailout deal, and to shore up his government's popularity. But Tsipras signalled he would stick to the fiscal course agreed with the European Union and the International Monetary Fund by keeping Finance Minister Euclid Tsakalotos in his post. Greece wants to wrap up a review on labour reforms and fiscal issues swiftly to qualify for more debt relief and for inclusion in the European Central Bank's bond buying programme. This will help it to regain bond market access by 2018, when its current bailout programme expires. Tsipras switched his ministers around but brought few new faces to his cabinet. He appointed Dimitris Liakos, the chief of his economic office and a former fund manager, as the minister responsible for the implementation of Greece's bailout programme. To appease the creditors who have accused Greece of foot-dragging in selling state assets, Tsipras replaced Energy Minister Panos Skourletis, who has openly opposed some privatisations, with George Stathakis, currently the economy minister. Skourletis was moved to the Interior Ministry. Shipping Minister Thodoris Dritsas was replaced by Panagiotis Kouroublis, currently the interior minister. The shipping ministry oversees the privatisation of Greek ports. The head of Greece's privatisation agency, Stergios Pitsiorlas, was named deputy minister under Dimitris Papadimitrou, economist and president of the Levy Economics Institute, who was appointed economy and development minister. Effie Achtsioglou, a 31-year-old Labour Ministry official who participated in the negotiations with the foreign lenders, was appointed labour minister. "The prime minister tidied up his cabinet," head of Alco polling agency Costas Panagopoulos said. "This scheme seems more capable to fulfil the country's international obligations." Tsipras set up stand-alone ministries to handle tourism - the economy's key driver - and the crucial issue of migration, as Europe struggles with its worst migrant crisis in decades and thousands are stranded in the cash-strapped country. Migration Minister Yannis Mouzalas kept his post, along with the ministers of foreign affairs, defence and tourism. Greece is expected to return to growth in 2017, an event which Tsipras hopes will convince Greeks that their sacrifices are paying off. Tsipras' closest aide and adviser Nikos Pappas - who as state minister oversaw an auction on television licenses that was annulled by a top court, was appointed minister of digital governance and media. Tsipras was first elected in January 2015 promising to end years of austerity, but he reversed course six months later and signed up to a new bailout, Greece's third aid programme since the country's debt crisis broke out in 2010. He was re-elected in September last year, but his popularity ratings have been dropping for months and his Syriza party has been trailing the conservative New Democracy party. The swearing-in ceremony for the new cabinet will take place on Saturday. (Editing by Hugh Lawson)