Greek PM reshuffles cabinet, stocks climb

Greek bank stocks surged as some analysts said it could re-establish political stability ahead of a vote of confidence and the passage of a fiscal consolidation plan.

Greek banks <.FTATBNK> rose by as much as 4 percent and the benchmark Athens stock index <.ATG> was up 2 percent.

Following are analysts' comments on the reshuffle:

NIKOS CHRISTODOULOU, ANALYST, MERIT SECURITIES

"The reshuffle is being viewed positively by the market. It creates conditions of stability even though the situation is still critical."

"It will be a difficult summer because the foreigners are keeping asking for political consensus and the new bailout might not come before September."

COSTAS PANAGOPOULOS, HEAD OF ALCO POLLSTERS

"It's not an impressive reshuffle. The prime minister is only using party officials. It is a reshuffle that smoothes out imbalances in the party."

"What is important is that the new scheme is smaller and more efficient, and for the first time we have a body — a government committee — which is positive as a lack of coordination was obvious in the former government."

"However, with this reshuffle he mainly just recycled faces."

BEN MAY, EMEA ECONOMIST, CAPITAL ECONOMICS

"From an IMF/EU perspective what matters is that they stay on the right path, not who says it. I wouldn't have thought it (who holds the finance minister post) would make a huge difference either way."

ALEXANDER KYRTSIS, ANALYST, UBS

"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. His appointment means that the government will likely get the vote of confidence."

"The PM had to replace Papaconstantinou to appease his party."