Greek Economy Minister resigns hours after his wife resigns for these reasons

Greece's economy minister Dimitris Papademitriu resigned Tuesday, the prime minister's office announced, hours after his wife was removed from her post as state minister charged with working after she was found to receive 1,000 euros a month in damages.

The Prime Minister's Office said Papademitriou submitted his resignation on Monday night for "political" reasons and announced this morning that it was acceptable.

The two resignations raise speculation that a Greek cabinet reshuffle is likely to unfold amid media reports that Immigration Minister Yannis Mojlas may be changed because of health problems.

Papademetriou's resignation follows the publication of the newspaper Eleftheros Tipos on Monday for his wife, the minister, to receive legal housing compensation of 1,000 euros a month, totaling 23,000 euros.

Such compensation is theoretically legal, but the government of the Republic of Serbia has made an adjustment upon its arrival to the Authority, which grants compensation to parliamentarians and politicians from remote areas and does not have sufficient financial resources as recorded in their annual tax statements.

The next minister and her husband from the United States are better off, according to their tax statements, with assets exceeding 2 million euros.

The case embarrassed the government, which had pledged to end state waste, imposed tax increases on citizens and suspended privileges.

This comes as the European Union began on Monday the final round of negotiations leading to the exit of Greece from the European rescue programs expected in August next