5 Oct 2009

New Greek PM pledges to turn page on corruption

8:27 pm on 5 October 2009

Greek Socialist leader George Papandreou has pledged to "turn a page" on the scandals and economic malaise associated with the outgoing conservative government, which has suffered a shocking electoral defeat.

The Prime Minister, Kostas Karamanlis, conceded after early results in the snap election showed the Socialists had a lead of more than 7%, enough to give them an absolute majority in Parliament.

He then resigned as leader of his conservative New Democracy Party.

Supporters of Mr Papandreou's Pasok party, or Panhellinic Socialist Movement, celebrated their sreturn to power after more than five years in opposition.

The victory was unexpectedly resounding: with more than 70% of polling stations accounted for, the Socialists were ahead by nearly 10 percent.

Pasok needed 43% to win an absolute majority in parliament and looked certain to get it.

$6b stimulus package promised

Mr Karamanlis called the election halfway through his four-year term after the government was hit by a series of corruption scandals.

He said he wanted a new mandate to tackle Greece's economic problems, but his opponents say he failed to fulfil promises to clean up public office and to modernise the country.

Mr Papandreou has promised to tax the rich, protect the poor and deliver a stimulus package worth nearly $6 billion to assist the economy.