World Notes GREECE

In the end there were only two choices: hold the third national election in less than a year, or adopt the parliamentary course of last resort, a government of national unity. Last week Greece's three warring political groups swallowed hard and chose the latter. In the new government that was . sworn in last week, conservatives, socialists and Communists are for the first time ever steering the ship of state in unison. The new coalition, which is led by Prime Minister Xenophon Zolotas, 85, a former governor of the Bank of Greece, will remain in office until new elections in April.

The uncomfortable partnership was made possible after Socialist leader Andreas Papandreou finally dropped his demand for electoral reforms that would have benefited the leftists. The former Prime Minister, 70, who has been charged with bribe taking and breach of faith, will have no formal position in the new government.

For Zolotas, who is not a member of any party, the top priority is to repair the creaking economy, which is burdened by a large public debt and a 14% inflation rate -- three times that of the European Community. Several remedial measures have already been announced, including a 5% income tax hike and a 1% reduction in public spending.