Bombers penetrate government office

ATHENS: A bomb disguised as a gift exploded inside the Greek law enforcement ministry, killing a close ministerial aide.

Public Order Minister Michalis Chryssohoidis, who was in his office a few metres away from the blast, said the package had been intended for him. Pale and shaken, but otherwise unharmed, he told reporters he had "lost a valuable and beloved associate".

There was no immediate claim of responsibility for the bombing, which killed police officer Giorgos Vassilakis, 50, a father of two. But suspicion fell on radical Greek militant groups opposed to government economic and social policies.

"I express my pain and exasperation - pain and exasperation that every Greek citizen feels over today's terrorist attack," Prime Minister George Papandreou said.

The groups have stepped up attacks in recent years and have been targeted in a recent police crackdown. Although militants often make bomb attacks, the vast majority involve small devices planted outside banks, foreign companies or car dealerships late at night and do not cause injuries.

"At a time when our country and our people are waging a daily battle to bring us out of the [financial] crisis, cowardly murderers want to undermine normality and our democracy ... and the sacrifices the Greek people are making to set the country on its feet," Papandreou said.

Greece has been gripped by a financial crisis and narrowly avoided defaulting on its debt by receiving the first instalment of €110 billion ($192 billion) in rescue loans from other EU countries and the International Monetary Fund.

As part of the deal, Papandreou's Government has imposed austerity measures, to the outrage of labour unions who have responded with a series of strikes and demonstrations that have sometimes turned violent.

Police said the package exploded about 25m away from Chryssohoidis' office on the seventh floor of the heavily guarded ministry just outside the capital's centre.

"The cowardly murderers will be brought to justice," said Chryssohoidis, who is considered instrumental in dismantling Greece's notorious November 17 terrorist group in 2002 during his previous tenure as public order minister.

November 17, named for the date of a student uprising against Greece's 1967-74 military dictatorship, had killed 23 people, including foreign diplomats and Greek businessmen, in shootings and bombings from 1975 to 2002.

"We say one more time that we are not afraid and we will not be terrorised," Chryssohoidis stressed. "We will continue our struggle to keep our citizens, neighbourhoods, and cities safe."

Authorities said the powerful explosion caused extensive damage inside the ministry, but that there were no other injuries. It was not clear how it had been delivered.

ISLANDS FOR SALE

The Greek economic crisis is taking a toll on some of the country's most precious assets - its sun-kissed islands.

The Guardian reports that Greece is preparing to sell or offer long-term leases on some of its 6000 islands - of which only 227 are populated - in order to generate revenue.

An area in Mykonos, a top tourist destination, is one of the sites for sale, the newspaper says. The area is one-third owned by the Government.

The Private Islands website lists 5sq km Nafsika for €15 million ($26 million). Others are up for sale for less than €2 million, and the Guardian says investors are also looking at property on the island of Rhodes.

- AP