Watch CBS News

Socialist Greek PM Re-elected

Humbled and shaken, Premier Costas Simitis declared a razor-thin victory over conservative opponents Monday to close the tightest political contest ever waged in modern Greece.

With more than 92 percent of the votes counted from Sunday's election, the long-governing Socialists inched ahead of the New Democracy opposition 43.68 percent to 43.03 percent in the race to fill the 300-seat parliament.

"The difficult election battle has given us a significant political victory, much bigger than the numbers show," said Simitis, who looked visibly exhausted.

In reality, the incredibly tight race was a shock to the Socialists, who had called early elections in the hopes their economic achievements would carry them to a convincing win. Simitis's prestige as party leader also took a hit.

For the opposition, even the apparent defeat proved a significant boost for Costas Caramanlis, the leader in his first major election campaign since taking over the party three years ago.

He immediately took aim at the Socialists in comments that threatened to escalate into the type of tit-for-tat political bickering that has crippled Greece in the past.

"The government cannot progress without our consent," Caramanlis said.

But the near-defeat won't chip away too much at the Socialists' hold on power in the next four-year term.

Even a meager win translates into a majority grip on parliament under election laws that heavily favor the winner. The Socialists dominated the last parliament with 160 seats to 103 for New Democracy. Now, the balance will be closer: up to 157 for the Socialists to about 126 for New Democracy.

For hours after polls closed, events on the streets mirrored every small blip in the agonizing vote count.

When the conservatives nudged ahead earlier, tens of thousands of New Democracy backers unfurled blue-and-white party banners and danced to folk music in central Athens. Vendors sold "funeral notices" for the Socialists.

Minutes later, the Socialists edged into the lead. Their headquarters came alive with flares, blaring horns and a sea of green party flags.

In the northern city of Thessaloniki, groups from the rival parties lobbed firecrackers at each other.

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

The Socialists have led Greece for 16 of the past 19 years while evolving from a party of generous patronage and anti-American venom to respected fiscal managers and reliable Western allies.

Previously, the tightest race was in 1996, when the Socialists took 41.5 percent and New Democracy had 38.1 percent.

This time, the tiny difference could leave the new Socialist government weaker, vulnerable to special interests that oppose programs seen as essential to keep pace with European Union partners. hose include modernizing the education system and selling off state enterprises.

"Reforms ... have to be put into motion despite the reaction they will provoke," urged a commentary in the Kathimerini newspaper.

Simitis called early elections in hopes of expanding his parliamentary base through voter satisfaction over Greece's economic strides. His government led an astonishing economic turnaround that has brought the EU's poorest nation to certain membership in the bloc's single currency group.

But conservatives mounted a well-orchestrated campaign targeting 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 of the party.

Caramanlis tried to deflect criticism of his political inexperience by insisting that fresh ideas were needed. He also accused the Socialists of arrogantly abandoning rural Greece in the drive to achieve EU fiscal targets.

That message resonated strongly in the agricultural regions in central and northern Greece, once a mainstay of the Socialist dynasty. Many farmers complain that state subsidies and other aid have been drying up.

The Socialists also had to contend with a recent slump in the once-skyrocketing Athens Stock Exchange. The Socialists openly linked their policies with the exchange's success last year, but now insist they never encouraged a rush to invest.

But no major differences separate the two main parties on big issues, including streamlining the public sector and advancing efforts to end friction with longtime rival Turkey. The overlapping agendas left legions of voters capable of leaning either way.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.