The government also got a pat on the back from its European Union colleagues for what it has achieved with its economy so far, and is expected to use the endorsement to push its austerity programme forward.

For many ordinary Greeks, however, the European Union's decision to start EMU without them brought home the reality that their country is not yet in the European mainstream.

"Greece at the tail of Europe," bemoaned Eleftheros Typos. "On euro sidelines," echoed the English-language Kathimerini.

EU leaders decided at the weekend to endorse the launch of Economic and Monetary Union (EMU) in January with 11 countries, but left out Greece, which does not meet any of the criteria set out in the Maastricht treaty. Greece is hoping, instead, to qualify and join by 2001.

By way of compensation, EU finance ministersissued a statement noting "the substantial progress achieved by Greece towards meeting the convergence criteria". "Greece's progress will be judged in the same way as that of the member states that will join EMU on January 1, 1999," the ministers added. Greek officials touted the statement as firm backing for the government's programme and welcomed in particular the pledge not to change the criteria -- an issue that had worried the "outs" of monetary union.

"Our country will be the 12th member of EMU on January 1, 2001," Greek prime minister Costas Simitis told reporters at the summit in Brussels.

Financial markets were also upbeat. The drachma rose against the mark and bonds climbed, squeezing the spread over German bunds on expectations of eventual convergence.

The stock market opened three per cent higher on what was described as EMU euphoria, before profit-taking took hold. But while much international reaction to the summit concerned the deal to split the term of the head of the European CentralBank, Greek reaction focused heavily on what the summit meant for the country as it prepared for 2001. "Eighteen difficult months ahead," the daily Eleftheros Typos told Greek readers. Others warned of new taxes and higher unemployment.

Simitis's socialist government has promised to bring the large and unwieldy Greek public sector in order through restructurings and privatisations to put the country's finances in EMU order.

It has made a number of moves in this direction but has been criticised for being slow and for backtracking when opposition gets tough.

The daily Kathimerini -- often at odds with the government -- said in an editorial that the EU summit now had given the "starting pistol" for Greece.