She's not the most popular politician in Greece.

And her third term in office will be closely watched.

While many accept she's helped the country avoid bankruptcy - others fear they're in for more strict austerity measure.

(SOUNDBITE) (GREEK) SHOP EMPLOYER ANGELIKI, SAYING:

"It obviously means more of the same harsh policies for southern countries."

(SOUNDBITE) (GREEK) PENSIONER LAWYER YANNIS KOUNTOUMANOS, SAYING:

"If you believe in Europe it's positive. I don't think any other option existed."

It's a key few weeks for Greece.

Officials from EU, IMF and ECB are in Athens assessing the government's progress on reforms

They are reports Greece may achieve a primary budget surplus this year...and if they DO they may be able to negotiate MORE debt relief.

Landesbank's Folker Hellmeyer.

(SOUNDBITE)(English) FOLKER HELLMEYER, CHIEF ANALYST, BREMER LANDESBANK

"We had growth in the second quarter. We will have growth in the third quarter. We have positive surprises on the household situation. We will see a primary surplus probably this year and that gives a lit bit of relief to the whole situation within the euro zone and I think the troika will be quite confident."

Others aren't so sure, believing it's still a tough environment for the periphery.

But the Greek government says it's confident there won't be any dramatic change of direction.

(SOUNDBITE)(English) GENERAL SECRETARY CO-ORDINATION FOR THE PRIME MINISTER DIMITRIS VARTZOPOULOS SAYING:

"We are very accustomed to it, it was very good work together, very successful work I dare to say, so we are confident this way of working together will continue with the same success."

But the plight of workers at ELVO which makes military vehicles is an example of how difficult the task is.

It's one of three defence firms which currently cost the government 150m euros a year.

Jobs will go if they are shut down - something Greece can ill-afford.

But the government can't find a buyer for ELVO and negotiations are continuing.

They could take weeks as could this latest review by the troika.

And Greece won't get the next bailout instalment until Athens has proved it's taken measures to make the economy more competitive.

 

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