Greek voters set to reject ruling conservatives

ATHENS, Greece — Greek voters were expected to reject the ruling conservative party Sunday, angered by a faltering economy and a string of corruption scandals.

The opposition Socialists led Prime Minister Costas Karamanlis’ New Democracy party by 6 to 7 percentage points in the last opinion polls two weeks ago, enough for a small parliamentary majority that would let them form a government on their own.

Analyst Thodoris Livanios said the conservatives seemed unable to achieve a last-minute upset but that the opposition could not count on retaining its lead. He said it was unclear how strong the Socialist lead would be and whether it would assure opposition leader George Papandreou an absolute majority.

If no party secures 151 of parliament’s 300 seats and none can form a coalition with a smaller party, new elections will have to be called, likely in November.

Karamanlis has only a one-seat majority and has seriously been damaged by scandal, with several close associates forced to resign after being implicated in a series of financial affairs, including a land-swap deal with a Greek Orthodox monastery that cost the state more than euro100 million ($145 million).

The Greek economy is expected to contract in 2009 after years of strong growth, while the budget deficit will probably exceed 6 percent of economic output.

A new government will likely have to borrow heavily just to service the ballooning debt — set to exceed 100 percent of GDP this year — and keep paying public sector wages and pensions.

Many conservative voters also were angered by rising crime and last year’s December riots, sparked by the death of a 15-year-old boy shot by a police officer in Athens. The sight of anarchists rampaging through the capital and other cities, smashing shops and banks with no police intervention, shook many conservatives’ faith in Karamanlis.

A small bomb exploded in Athens Friday, without causing injury, two blocks from the site of Karamanlis’ final campaign speech. A far-left group, Conspiracy Nuclei of Fire, claimed responsibility for the bombing, which caused no injuries.

Officials said voting took place Sunday without major problems. One man who changed his mind just after voting was arrested in a provincial town when he allegedly grabbed the box from officials and tried to remove his ballot.

About seven hours before voting ended, state NET television said turnout was running at about 45 percent.

Karamanlis, 53, called the election halfway through his second four-year term, citing the need for urgent economic reforms. He advocates austerity with state salary, pension and hiring freezes.

“Today, Greeks make a responsible decision for a safe exit from the crisis, for policies that may be hard but guarantee a dynamic return to growth from 2011 onwards” Karamanlis said after voting in the northern city of Thessaloniki.

Papandreou, 57, says a stimulus package of up to euro3 billion is needed to jump-start the economy. His Panhellenic Socialist Movement acknowledges this will mean additional borrowing, although Papandreou has pledged to limit that by reducing government waste and going after tax dodgers.

“I am sure that, together, we can change Greece,” Papandreou said after voting in northern Athens. “We want it, we can do it and we will succeed.”

“I have always voted conservative, so I’ll do the same now but with a heavy heart,” voter Dimitris Razis, 37, said at an Athens polling station. “Karamanlis squandered his previous term, but on the other hand times are too difficult to entrust the government to Papandreou — I just don’t think he can deliver,” the engineer said.

Both Papandreou and Karamanlis are scions of political families that have ruled the country for most of the past half-century — in what has been described as a hereditary democracy.