Nowhere has the Ocalan affair had a more devastating impact than in Greece. Across Europe Greek embassies have been ransacked. Greek diplomats have been threatened by Kurdish demonstrators in more than 20 cities. Greece has been made to look both ludicrous and mendacious for its bungled attempt to shelter the PKK Kurdish leader while repeatedly denying that it was doing anything to help him. And now the Greek Government has paid a heavy price, with the resignation of Theodoros Pangalos, the Foreign Minister, and the Ministers of the Interior and Public Order. Costas Simitis, the Prime Minister, has been badly damaged, and the affair may lead to his removal.

Greece has brought this catastrophe on its own head. Its support for Abdullah Ocalan is a result of short-sighted policies that are guided more by emotion than reason and that have often cost the country so dear. Suspicion of Turkey and hostility to whatever government holds office in Ankara have long been the main issues determining policy in Athens: the old Greek words hysteria and paranoia aptly characterise the relationship. The Kurdish revolt was seen by some politicians as a way of tying down the Turkish Army, an important aim in the confrontations with Ankara over the Aegean and Cyprus. And Mr Ocalan, the leader of the revolt, was therefore hailed as a hero who was not only battling against Turkish oppression but also serving a useful political purpose.

Acting on the principle of "my enemy's enemy is my friend" may win votes; but it makes for poor statesmanship. Greece knew that open backing of the PKK was a provocation that could trigger an incalculable Turkish response, and Mr Simitis steered a careful course between support for Kurdish aspirations and caution in not endorsing PKK violence. But the murky involvement of the Greek Ambassador to Kenya, the attempt to give refuge to Mr Ocalan and the use of forged passports and diplomatic subterfuge have ruined this policy. Greece now stands accused of the very kind of backing for terrorism that it would be swift to denounce from any fellow European Union member.

Mr Pangalos, a political heavyweight often too outspoken for ministerial office, had to go. So, probably, did the others who resigned. But although Mr Simitis called for their departures, this does not lessen the pressure on him, from both Left and Right. Senior Pasok politicians, who dreamt of inheriting the Papandreou crown, have never forgiven Mr Simitis - not only for beating them to the premiership but for betraying the crusty, nationalist, idiosyncratic Papandreou legacy. They see him as a Major diluting the Thatcher revolution. They mask their left-wing animus under the guise of defending Greek national interests, a populist cause embraced also by the opposition Right.

The isolation of Mr Simitis is bad for Greece. A pragmatist and moderate, he needs domestic as well as foreign support to try to steer his country and party into policies for the next century. A ray of good news is his appointment of George Papandreou, son of the former Prime Minister, to succeed Mr Pangalos. He is one of the most moderate and intelligent men in the Cabinet. But it will be hard for both of them to restore Greek pride and voter confidence after the Ocalan fiasco.