Local polls in Greece yesterday could trigger national elections in one of Europe’s most economically troubled countries if they fail to give Greek Prime Minister George Papandreou support for austerity measures.
Papandreou has said he would dissolve parliament if he does not receive a fresh mandate for more budget cuts and structural reforms agreed in May under a 110 billion euro (US$155.6 billion) EU-IMF bailout.
“I am not glued to my post. I am only interested in fighting for my country ... It’s up to the citizens to decide whom they trust to govern the country,” he told Ethnos newspaper in an interview. “Citizens will decide in today’s election if we will hold steady on the path of salvation ... or if we will go back to decay and to the Greece of bankruptcy.”
Photo: AFP
Papandreou told the daily Ta Nea on Saturday his decision would be based largely on how his candidates perform in the first round of elections in 13 newly created regions.
He has not set a specific threshold for the support he requires, allowing ample room to maneuver in deciding whether to call a snap poll.
The ruling Socialists came to power in October last year on plans to boost welfare spending. However, they were soon forced to switch to pay cuts, tax hikes and a pension freeze after a debt crisis exploded when they revealed Greece’s finances were much worse than expected.
SUPPORT
Papandreou says he needs voters’ support to continue on the austerity path, but analysts warn he is pursuing a high-risk strategy that may put the fiscal program at risk.
“I think his strategy is risky and was not necessary,” said Andreas Scheuerle, an economist at DekaBank. “It will be just great if his gamble pays off, but if it doesn’t, there will be a debate on whether the austerity policy is sustainable.”
Election jitters have helped push Greek bond spreads wider as investors fret about instability ahead of a year-end deadline set by the EU and the IMF under the bailout plan to slash the budget deficit, a key test of Greece’s capacity to handle a crisis that has threatened the euro.
Contrary to other deficit-ridden countries like Ireland and Portugal, the Socialists enjoy a comfortable parliamentary majority and recent opinion polls give them a lead over the main opposition conservative New Democracy party.
However, the two parties are down in the polls and analysts say the most likely outcome of snap general elections would be a coalition or a single-party government with a wafer-thin majority. Both options would hurt Greece’s reform drive.
VENTING ANGER
Opinion polls have indicated Papandreou’s PASOK party was unlikely to suffer a big blow from the conservatives, but it may lose in politically important areas, including the Athens region, as voters vent anger at the austerity measures.
Police have stepped up patrols, fearing militant attacks on voting stations and security personnel following a wave of failed letter bomb attacks last week.
The media and analysts have speculated Papandreou seeks a lead of at least 4 percentage points over the conservatives and some say his comments are intended to fire up his party base.
New Democracy has accused Papandreou of making empty threats over snap polls and urged voters to call his bluff.
“The people should know that if they fail to send a message to the government, they will encourage more measures, more austerity, unemployment and business closures,” New Democracy leader, Antonis Samaras said.
The Greek economy, which amounts to about 2.5 percent of the euro zone, is set to shrink by 4 percent this year as austerity bites during the country’s worst recession since the mid-1970s.
Nearly 10 million citizens and immigrants will vote in the first round of the municipal and regional elections. The second round will be next Sunday.
Local media have speculated that a snap vote, if it is called, could be held on Dec. 12.
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