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April 11, 2000

  

ATHENS, APR 10 (AP) - Greece's governing Socialist may have won the most closely fought parliamentary elections in recent memory, but they failed to emerge victorious in their quest for political supremacy.

   

Premier Costas Simitis barely managed to shut out the conservative New Democracy party, scraping into the 300-member parliament with less than 1 percent of the vote for a third consecutive four-year term. The Socialists have already governed for 16 of the past 19 years.

 

With more than 93 percent of the vote counted from Sunday's elections, Simitis' Panhellenic Socialist Movement received 43.7 percent and 157 seats. Costas Caramanlis and his New Democracy got 42.9 percent and 126 deputies. The Communist Party was stable from the 1996 polls with about 5.4 percent and 11 seats.

  

Greece's electoral law works against coalition governments, stripping votes from other parties to reinforce the electoral leader and give the winning party a majority with even the slimmest of victories.

  

The big losers were Greece's smaller left-wing parties, only one of which managed to break the 3 percent barrier needed to enter parliament. The Left Coalition received 3.2 percent and six seats.

  

"I call all Greeks to join our calls to arms, far away from party conflict, for our common goals for a strong, modern and socially just Greece," Simitis said. "A Greece on the front-line of the European Union."

  

Although the Socialists can govern with 157 seats, they will now have to pay more attention to the opposition and their own internal dissenters.

  

New Democracy significantly increased its strength among voters and in parliament. In the 1996 elections, the Socialists had received 41.5 percent and governed with 160 seats, compared to 38.1 percent for New Democracy and 103 seats.

  

Simitis' tough fiscal policies helped cut inflation from the double-digits to 3 percent and bring Greece to brink of full membership in the European Union's single currency group, which it expects to join early next year.

  

But hard-core Socialists in his party may create problems for Simitis when he tries to push through some of the reforms needed for Greece to fully participate in the euro zone along with its EU partners.

  

They include selling off the state-controlled telephone company and the national carrier, Olympic Airways. Difficult reforms include restructuring the state pension system, and it is uncertain if the Socialists will go ahead with costly campaign promises that include hefty increases for pensioners and minimum wage workers.

  

"New Democracy won an impressive expansion of its social support. It is clear that the government cannot progress without our consent," said party leader Costas Caramanlis. "The election result is in essence is a win for New Democracy."

  

The small difference between the Socialists and the conservatives was a clear indication that Greece's voters were tired with the way they are governed.

  

Voting is compulsory in Greece, which has 10.2 million people but nearly 9 million voters because of an aging population and Greeks returning from abroad to vote.

  

"The people did not vote so much for New Democracy as against the Socialists. Many voted against them because the were bored with the same people for the past 20 years," said Nikos Dimou, a writer and commentator.

  

The hair-thin victory was seen as a blow to Simitis' prestige and a miscalculation for the Socialists. Simitis called early elections in hopes of expanding his parliamentary base through voter satisfaction for Greece's economic achievements.

  

"The decision for him to going to early elections was wrong. Things are going to be more difficult for Simitis now," said Giorgos Alogoskoufis, New Democracy's financial chief.

   

A well-orchestrated campaign helped the conservatives close the gap in the weeks before the elections. They targeted day-to-day issues such as unemployment and crime. They also tried to portray the Socialists as oligarchs grown accustomed to power.

  

The 43-year-old Caramanlis took over as party leader in 1997 mostly on the strength of his family ties. His uncle and namesake, former Premier Constantine Caramanlis, was one of Greece's most respected statesmen and the founder the party. The boost his party received should not endanger Caramanlis' position as New Democracy leader.

 


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