ATHENS, June 17, (Agencies): The pro-bailout conservative party won Greece’s cliffhanger election Sunday against anti-austerity radical leftists and will hold a majority with the socialists, a first official estimate said.
New Democracy won 29.5 percent, giving it 128 seats in parliament including the 50-seat boost given to the election winner — compared to a result of 27.1 percent and 72 seats for the leftist Syriza, according to the estimate.
The socialist Pasok won 12.3 percent which would give it 33 seats.
Greece will remain “anchored” in the euro and will respect its international engagements, the winner of the critical general election said Sunday, calling for a coalition of pro-European parties.
“Today the Greek people expressed their will to stay anchored with the euro,” said New Democracy leader Antonis Samaras, as results showed his party winning against the leftist Syriza party which campaigned against austerity.
Greek socialist leader Evangelos Venizelos said Sunday he was ready to form a coalition with New Democracy conservatives who won general elections but only if other leftist parties were included.
“A government of national responsibility should include at least New Democracy, Pasok, the Democratic Left and Syriza,” Pasok leader Venizelos said, adding: “No decision can be taken without this national unity.”
Greece’s lenders say a new government must accept the conditions of the bailout - on top of a 110 billion euro package in 2010 - or funds will be cut off, driving Athens into bankruptcy.
A Greek euro exit has the potential to unleash shocks that could even break up Europe’s single currency and plunge the global economy into chaos.
Central banks from major economies stand ready to take steps, including coordinated action, to stabilise markets if the election triggers a financial storm or public panic, G20 sources told Reuters last week.
Many believe Greece cannot hope to deliver an austerity programme designed to radically cut debt given it will drive it ever deeper into recession. But its euro zone peers are prepared only to tinker with the deal and then only with a government firmly committed to the bailout.
“There can’t be substantial changes to the agreements but I can imagine that we would talk about the time axes once again, given that in reality there was political standstill in Greece because of the elections, which the normal citizens shouldn’t have to suffer from,” German Foreign Minister Guido Westerwelle said on German TV station ARD.
“But there is no way out of the reforms. Greece must stick to what has been agreed,” he said.
Samaras has called for an extra two years to make the cuts demanded of his country.
Opinion polls show Greeks, weary and disillusioned after five years of deep recession, overwhelmingly favour remaining in the euro, but there is bitter anger over repeated rounds of tax hikes, slashed spending and sharp cuts in wages and pensions.