GREECE: Greek Prime Minister Costas Karamanlis given a mandate to form the government after being re-elected to a second term

Record ID: 645143

  • Title: GREECE: Greek Prime Minister Costas Karamanlis given a mandate to form the government after being re-elected to a second term
  • Date: 17th September 2007
  • Summary: KARAMANLIS WALKING BACK TO HIS OFFICE (2 SHOTS)
  • Embargoed: 2nd October 2007 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: Domestic Politics
  • Reuters ID: LVA2D9951TYU9NTYW3EY3W9QF8VY
  • Story Text: Greek Prime Minister Costas Karamanlis, re-elected to a second term, received a mandate from the country's president on Monday (September 17) to form a government.
    Karamanlis was re-elected on Sunday (September 16) in a narrow victory against his main rival PASOK socialist party leader George Papandreou.
    The new government faces having to move forward with much needed reforms with only a two-seat parliamentary majority after smaller parties gained votes in the elections.
    That could make things tough for Karamanlis, praised by Brussels for his economic record, and who vowed through his campaign to move quickly on reforms such as overhauling the pension system and planned privatisations.
    The New Democracy party saw their majority slashed from 165 seats in 2004 when they swept to power ending an 11-year socialist rule, to 152 seats in parliament.
    Ahead is the need to overhaul a burdened pension system, reform education, and continue with privtizations, all sure to stir debate in parliament.
    "The President of the Republic gave me the mandate to form a government. We have full awareness of our great responsbility. We owe it to Greeks, whoever they voted for, to move quickly and decisively in order to move Greece forward. This is what they demand of us and that is our commitment," Karanmanlis said.
    Karamanlis is expected to make changes to his previous cabinet but is seen as unlikely to change his Finance Minister George Alogoskoufis, whose successful economic record is credited for producing the election victory.
    Karamanlis called the early election six months before the end of his first term, certain his economic record of a reduced budegt deficit, a 4.4 percent economic growth and a cut in unemployment would be enough to win.
    But last month's forest fires that killed 65 people on the back of scandals -- such as the sale of overpriced state bonds to pension funds -- put off a large number of voters.
    With almost all votes counted, Karamanlis had 41.8 percent of the votes, down from 45.4 in 2004.
    The opposition socialist PASOK party had its worst result since 1977.
    The far-right LA.O.S. party won 3.8 percent of the vote, gaining 10 seats, the first far-right party to make it to parliament since seven years of military rule ended in 1974.
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