Greece (AP):

Greece's new Socialist government took charge yesterday, promising Greeks "time to breathe" before they face the realities of a rapidly cooling economy compromised by high state spending and a soaring public debt.

Prime Minister George Papandreou, 57, has announced a 100-day action plan to address the country's economic woes with a stimulus package of up to euro3 billion ($4.42 billion), tax reforms and infrastructure investment.

"We won't change Greece in 100 days," Papandreou told his first Cabinet meeting after its members were formally sworn in. "But we will give the country enough time to breathe, to gather its forces for the big leap forward it must take."

His PASOK party won a crushing weekend electoral victory over the scandal-battered conservatives, returning after five years in opposition with a comfortable 160 seats in the 300-member Parliament.

Powerhouse economies

The result, along with a recent election win by socialists in Portugal, bucks a European trend that has seen a conservative surge in the continent's powerhouse economies.

Orthodox Church leader Archbishop Ieronymos of Athens swore in the new government during a religious ceremony attended by President Karolos Papoulias.

The 36-strong new government walked to and from the presidential mansion, cheered by hundreds of people lining the street and jostling to shake hands with Papandreou.

As well as being prime minister, Papandreou will be responsible for foreign policy, a position he held in the last Socialist government.

At the top of EU and NATO member Greece's foreign policy priorities are outstanding disputes with neighbouring Turkey over Aegean Sea boundaries and the divided island of Cyprus. As foreign minister in 1999, Papandreou championed rapprochement with Turkey and is expected to explore ways of resuscitating the currently stalled process.