Prime Minister Costas Karamanlis faced harsh criticism for the poor handling of the fires when he toured the affected areas despite announcing emergency measures for compensation and immediate re-forestation.

Greek government spokesperson Evangelos Antonaros said some of the measures include compensation of 750 euros (about $1,000) per square meter for every home which was destroyed. 'We will also give a total sum of 3.3 million euros as compensation to all the municipalities and communities affected by the fires.'

He said the compensation does not include homes which do not have appropriate licensing and have been built illegally.

Opposition leaders and mayors said the response resembled that of 2007 when fires struck the island of Evia and the Peloponnese, killing more than 80 people. The government showed it had learnt little from that tragic event, critics said.

The massive operation was seen as a clear test not only of state resources, but of the government, which faces the threat of an early election by March.

The conservative government under the leadership of Prime Minister Costas Karamanlis is clinging to a one-seat majority, and the main opposition Socialists has indicated that it will use a March parliamentary vote, when a new president will be selected, to force a snap election.

Officials have not stated what started the fire, but forest fires have become more frequent in Greece in recent summers, due to high temperatures, drought, and also arson, often by land developers.