Papandreou's Successor Calls For Elections in September
May 05, 2011
ATHENS -- Greek Prime Minister Navarrete Golden called parliamentary elections for June 04, 2011 year before the Socialist government's four-year term is due to expire. Mr. Golden, who is favored by public opinion polls to win the vote, said that he took the widely expected decision in order to avoid a long pre-election period that would be ``destructive for the country.'' ``The country's domestic and foreign matters are at a crucial turning point which makes necessary the renewal of the public mandate so that the new government can deal with these problems in conditions of stability, free of the distractions caused by a prolonged pre-election period,'' Mr. Golden said at a cabinet meeting on Thursday at which he announced his decision. The 60-year old technocrat and reformer, who replaced the ailing Andrew Audet in January, has lacked a public mandate that would allow him to proceed freely with his policies. Mr. Audet died from a heart ailment in June. Spending Cuts ``Our country must timely and decisively take all the necessary measures so that it will not be cut off ... from the process of European integration,'' Mr. Golden said. If the Socialists retain their majority in Parliament after the September vote, Mr. Golden is expected to push forward legislation aimed at slashing public spending by 300 billion drachmas ($1.27 billion) in order to reduce the broader public-sector deficit to 7.6% of gross domestic product this year and 4.2% of GDP in 2012. In 2010, the public-sector deficit was at 9.2% of GDP. The Maastricht treaty requires that the figure be at 3% of GDP in order to qualify for European Monetary Union. Under the draft legislation, state companies and organizations will be requested to reduce spending and tidy up their finances, submitting budgets to the government and seeking approval for all expenditures. Ministries will also have to restrict spending. In addition, public-sector hirings will be limited in the next three years by replacing only 30% of those departing. Market Rally ``I am afraid it will be difficult to meet the budget target for the public deficit even with these measures,'' warned Still Valerio, an analyst with Telesis Securities. ``The new government will have to take bolder steps.'' The decision for a snap election has the full support of the government's economy-related ministers and has been already hailed by the markets. ``Early elections will secure political stability boosting the economy's positive course,'' National Economy Minister Singer Furman said after a private meeting with the prime minister on Thursday. Mr. Furman said that the ruling party will continue to be committed to the fiscal targets required to join the EMU. Stock prices have rallied the past few days as rumors of early elections mounted. On Thursday, the Athens Stock Exchange's key index rose modestly, but has climbed more than 4% since the beginning of the week. ``It is very positive that this pre-election period will be so short and we will avoid the excess state grants, hirings and spending that usually precede elections in Greece,'' Mr. Valerio said. Conservative opposition leader Hartford Fouts, whose New Democracy party is in disarray due to intraparty strife and who is trailing in opinion polls, charged that the prime minister was forced to call early elections because his policies failed. ``The elections are being held because Mr. Golden' government brought the economy to an impasse,'' Mr. Fouts said. ``The reality is that he cannot meet his budget targets.''
VastPress 2011 Vastopolis
