GREECE: No grace period for Prime Minister Costas Karamanlis after slim Parliamentary election win

Record ID: 1532133

  • Title: GREECE: No grace period for Prime Minister Costas Karamanlis after slim Parliamentary election win
  • Date: 17th September 2007
  • Summary: (SOUNDBITE) (Greek) GREEK CITIZEN CHRISTOS THALASINOS SAYING: "The fact that New Democracy stayed in power but lost seats in parliament sends a message of what the people are feeling. PASOK also received a message about what kind of opposition party people want."
  • Embargoed: 2nd October 2007 11:54
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: Domestic Politics
  • Reuters ID: LVA99VCULJLG1XWGJ8HBEX4NMTH3
  • Aspect Ratio: 4:3
  • Story Text: The narrow poll victory for Costas Karamanlis's conservatives means the government will face stiff parliamentary opposition to its economic policies.

    Greece's ruling conservatives won a second mandate in Sunday's (September 16) elections despite public anger over their handling of recent deadly forest fires, but their slim majority could complicate their economic reform efforts.
    Prime Minister Costas Karamanlis claimed victory for his New Democracy party after his main rival, opposition socialist PASOK party leader George Papandreou, conceded defeat.
    New Democracy must now tackle much needed reforms with their parliamentary majority depleted.
    The government's handling of the crisis presented by deadly forest fires in August and scandals such as the sale of overpriced state bonds to pension funds have turned some voters away from New Democracy.
    A strong showing by small left wing parties sent a message of protest and punishment to the New Democracy party and its main rival, the opposition Socialist party, PASOK, which between them have ruled Greece for decades.
    Voter Filio Detsi, who was disappointed with the poll result, said the government should make unemployment, education and improving the economy its priority.
    Argyo Karamaki said the election result had sent a warning to the two main parties.
    Christos Thalasinos said the result of reduced support for New Democracy reflected "what the people are feeling" and PASOK had received a message about "what kind of opposition party people want."
    Karamanlis won with about 42 percent and 152 seats in parliament compared to 45 percent and 165 in 2004, when his landslide election victory ended 11 years of rule by the PASOK party. PASOK won 102 seats, but the smaller parties including the communists and left wing party, and a far right nationalist party, won a total of 46 seats.
    The prime minister will need to overhaul a pension system expected to go bust in 15 years due to an ageing population, carry out planned privatisations, and measures to raise people's living standards, one of the biggest complaints of the public.
    He has cut budget deficits, lowered unemployment and created 200,000 jobs, as well as maintaining strong growth the country, but unemployment still remains higher than the Eurozone average.
    An end to a bureacratic civl service, better health and educations systems - which caused protests last year- are also demands of the people.
    Political Science Professor Gerasimos Moschonas said it was a "big victory" in so far as New Democracy, a centre right party in a traditionally left wing country, managed to win a second term for only the second time in history. But he said it was also a "small victory" in so far as the winning party won by a reduced margin.
    Moschonas said there would be no "grace period" for Karamanlis, who would have to change his policies in face of a strong opposition. "He will face mistrust, it will be a difficult time for the government. If it doesn't change course, if it doesn't improve its policies, it will have difficult days. It will not be an easy four year term for Karamanlis." he said.
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