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November 16, 2010

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Socialists win Greek elections

GREECE'S governing Socialists emerged the winner of local government elections, despite a record low turnout and renewed pressure on the crisis-hit nation to impose a new round of spending cuts.

With 99.6 percent of the vote counted nationwide, the Socialists won mayoral races in Athens and Greece's second largest city, Thessaloniki.

Its candidates won eight of 13 races for regional governor, including greater Athens - giving Prime Minister George Papandreou a badly needed boost amid recession and rising unemployment.

Most races were decided on Sunday, after a first round of voting on November 7.

Greece expects the budget deficit in 2010 will be larger than initially targeted after the EU's statistics agency said yesterday the country's debt last year was actually much higher than projected. And officials from the EU and International Monetary Fund were in Athens to inspect Greece's implementation of the US$150 billion loan agreement that rescued Greece from bankruptcy.

Amid subdued celebrations, Papandreou visited Athens' mayor-elect Giorgos Kaminis, a mild-mannered outsider who had been written off by pundits at the start of the campaign. "Today the citizens have shown the way forward as we proceed on our course," Papandreou said.

He promised his government would serve out its term, after dropping a threat last week to call an early general election unless the public backed his reforms.

"We have been given ... time to change ... what hasn't been done in decades," he said.



 

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