A plan for the country's struggling economy will be key to the outcome of Greece's election on Oct. 4, senior political analysts and pollsters said Saturday in Athens. The main opposition party, PASOK, seemed to have the advantage in this area, analysts said. Struggling with the financial crisis, the ruling New Democracy (ND) party government had been affected by graft scandals for months. Prime Minister Costas Karamanlis called a snap election earlier this month, halfway through his government's four-year term.
Karamanlis said that he needed a renewed mandate from the people to deal with the economic downturn, as Greece's economy struggles with its first recession since 1994.
Greece has already borrowed more than 50 billion euros (72.42 billion U.S. dollars) this year to cover its deficit, which was expected to exceed 6 percent of its GDP, according to a draft budget for 2010.
Tourism and shipping, the country's two pillar industries, have suffered from the economic recession in Europe and Greece's economy is expected to shrink by about 0.5 to 1 percent this year.
New Democracy trailed the socialist PASOK by 6 percentage points in recent polls, which means Karamanlis may lose his gamble in October.
"With a one-seat majority in parliament, Karamanlis is unable to push for structural reforms to reduce the budget deficit. He promises strict control on public expenses and tax. But it may be too late," said George Kyrtsos, publisher of the daily newspaper City Press and a leading political commentator.
"By late October, the new government will have to present to the European Commission a concrete plan with belt-tightening measures to reduce this year's budget deficit to below the 3 percent of GDP ceiling, improve competitiveness and reduce public debt. But so far, no party has put forward convincing figures," he said.
George Papandreou, leader of PASOK and a former foreign minister, also outlined his economic plan, which is expected to include increasing tax rates for the rich and advocating a "green growth" economic model to save Greece's economy.
PASOK was clearly leading in the polls, but it could still fall short of the outright majority it needed in the new parliament to form a government alone, political analysts said.
Editor: Wang Hongjiang
13.09.2009
