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Greek Premier Moves Forward With Call to Speed Up Presidential Elections In Political Gamble, Greek Premier Speeds Up Presidential Vote
(about 4 hours later)
In deciding this week to accelerate the selection of a new president, Prime Minister Antonis Samaras of Greece has sent the country hurtling toward a fateful decision: whether to ratify his grip on power or open the door to a fundamental rethinking of the austerity policies that have defined life in the economically depressed nation for five years.In deciding this week to accelerate the selection of a new president, Prime Minister Antonis Samaras of Greece has sent the country hurtling toward a fateful decision: whether to ratify his grip on power or open the door to a fundamental rethinking of the austerity policies that have defined life in the economically depressed nation for five years.
Mr. Samaras’s call for the Parliament to elect a new president — a largely ceremonial post — amounts to seeking a vote of confidence in his center-right government that will play out between now and the end of the year. If it succeeds, he will retain the backing he needs to continue working with the lenders that have helped keep Greece afloat, and do so before having to negotiate further budget cutbacks.Mr. Samaras’s call for the Parliament to elect a new president — a largely ceremonial post — amounts to seeking a vote of confidence in his center-right government that will play out between now and the end of the year. If it succeeds, he will retain the backing he needs to continue working with the lenders that have helped keep Greece afloat, and do so before having to negotiate further budget cutbacks.
If it fails, it could trigger national elections early next year, giving the left-wing Syriza opposition party, which at this point is leading in the polls, a chance to take over and make good on its promises to steer Greece away from austerity. If it fails, it could trigger national elections early next year, giving the left-wing Syriza opposition party, which at this point is leading in the polls, a chance to make good on its promises to steer Greece away from austerity.
The maneuvering elicited a spasm of anxiety from the financial markets and watchful concern from the International Monetary Fund, the European Union and the European Central Bank, which together have negotiated the terms of Greece’s bailout and domestic economic policies since the financial crisis erupted in 2010. The decision rattled the Athens stock market, which closed down 12.78 percent, the biggest plunge since 1987. Bank shares were down 16.6 and 10-year bond yields rose above 8 percent, a level that effectively blocks Greece from raising money in the markets.
It also attracted watchful concern from the International Monetary Fund, the European Union and the European Central Bank, which together have negotiated the terms of Greece’s bailout and domestic economic policies since the financial crisis erupted in 2010.
In moving up the vote for a Greek president, Mr. Samaras is gambling that an earlier election will help him secure the 180 parliamentary votes, out of 300 seats, he needs to hold on to power for another year and a half.In moving up the vote for a Greek president, Mr. Samaras is gambling that an earlier election will help him secure the 180 parliamentary votes, out of 300 seats, he needs to hold on to power for another year and a half.
His announcement late on Monday came just hours after eurozone ministers approved a two-month extension on the current Greek bailout program, allowing Mr. Samaras to seek the votes he needs for the presidency ahead of any new, no doubt painful agreement with Greece’s creditors. The selection of the new president had originally been anticipated to take place in February.His announcement late on Monday came just hours after eurozone ministers approved a two-month extension on the current Greek bailout program, allowing Mr. Samaras to seek the votes he needs for the presidency ahead of any new, no doubt painful agreement with Greece’s creditors. The selection of the new president had originally been anticipated to take place in February.
In announcing his decision, Mr. Samaras said the aim of the election was to restore political stability.In announcing his decision, Mr. Samaras said the aim of the election was to restore political stability.
But Mr. Samaras’s decision rattled the Athens stock market, which closed down 12.78 percent, the biggest plunge since 1987. Bank shares were down 16.6 and 10-year bond yields rose above 8 percent, a level that effectively blocks Greece from raising money in the markets. Under the Greek Constitution, if the Parliament cannot choose a president after three rounds of voting and at least a three-fifths majority, then it must be dissolved and a new general election held. Most analysts believe that Mr. Samaras is short about 25 votes of the 180 votes necessary in the third round.
Under the Greek constitution, if the Parliament cannot choose a president after three rounds of voting and at least a three-fifths majority, then it must be dissolved and a new general election held. Right now, most analysts believe that Mr. Samaras is short about 25 votes of the 180 votes necessary in the third round.
“The advantage to holding the decision now is that he does not have to agree to further austerity measures which will hurt his popularity further and would make it that much harder for anyone to cross the divide and vote with him,” said Nick Malkoutzis, the founder and editor of MacroPolis, the political analysis website.“The advantage to holding the decision now is that he does not have to agree to further austerity measures which will hurt his popularity further and would make it that much harder for anyone to cross the divide and vote with him,” said Nick Malkoutzis, the founder and editor of MacroPolis, the political analysis website.
But Mr. Malkoutzis and many other analysts said they believed it would still be very difficult for Mr. Samaras, who is holding on to an extremely thin majority in Parliament. The prime minister nominated Stavros Dimas for the job, a 73-year-old former member of the European Commission and fellow conservative. But Mr. Malkoutzis and many other analysts said they believed it would still be difficult for Mr. Samaras, who is holding on to an extremely thin majority in Parliament. The prime minister nominated Stavros Dimas, a 73-year-old former member of the European Commission and fellow conservative.
Some analysts speculated that Mr. Samaras would not have made his move if he did not have the votes. But others thought they were simply watching desperation. Some analysts speculated that Mr. Samaras would not have made his move if he did not have the votes. Others suggested they were watching desperation.
If a new general election is held, polls suggest that Mr. Samaras’s party, New Democracy, would come in behind Syriza, though many pollsters say that there are still a large number of undecided voters. If a new general election is held, polls suggest that Mr. Samaras’s party, New Democracy, would come in behind Syriza, though many pollsters say that there are still many undecided voters.
The head of Syriza, Alexis Tsipras, has the political advantage of having had no part in the bailout agreements that have forced the government to raise taxes, cut pensions and lay off thousands of workers. Although he has long been critical of the austerity forced on Greece by Germany and other lenders, he has worked hard to moderate his image as a radical in recent months, trying to ensure investors and voters that he can be trusted with power. The head of Syriza, Alexis Tsipras, has the political advantage of having had no part in the bailout agreements that have forced the government to raise taxes, cut pensions and lay off thousands of workers. Although he has long been critical of the austerity forced on Greece by Germany and other lenders, he has worked hard to moderate his image as a radical in recent months, trying to assure investors and voters that he can be trusted with power.
But he has said repeatedly that he wants to break from austerity policies and restructure the government’s huge debt burden, which stands at 174 percent of gross domestic product.But he has said repeatedly that he wants to break from austerity policies and restructure the government’s huge debt burden, which stands at 174 percent of gross domestic product.
Panos Skourletis, spokesman for Syriza, said he did not believe Mr. Samaras would get the necessary votes. The government, he said, moved up the election so it would not have to “deal with disclosing the commitments they have towards the troika and the underpinnings of the new credit-line deal.” Panos Skourletis, a spokesman for Syriza, said he did not believe Mr. Samaras would get the necessary votes. The government, he said, moved up the election so it would not have to “deal with disclosing the commitments they have toward the troika and the underpinnings of the new credit-line deal.”
But what was important, he said was that that after the new elections, “Europe has to rethink its strategy against the crisis. If they don’t, they are risking not only Greece’s future but Europe’s as a whole, both financially and for the very cohesion.” But what was important, he said, was that after the new elections, “Europe has to rethink its strategy against the crisis. If they don’t, they are risking not only Greece’s future but Europe’s as a whole, both financially and for the very cohesion.”
Ever since Syriza won the European Parliamentary elections in Greece last spring, Mr. Samaras has tried to distance himself from austerity measures and offer Greeks a new, more hopeful narrative. Ever since Syriza won the European parliamentary elections in Greece last spring, Mr. Samaras has tried to distance himself from austerity measures and offer a new, more hopeful narrative.
Some say that he overplayed his hand when he suggested that Greece would exit its bailout program at the end of the year, triggering the a stock market plunge in October. Some say that he overplayed his hand when he suggested that Greece would exit its bailout program at the end of the year, triggering a stock market plunge in October. But he was back on television in November to announce that the economy had grown 1.7 percent in the third quarter of this year.
But he was back on television in November to announce that the economy had grown 1.7 percent in the third quarter of this year.
“We promised you that the country would exit the tunnel of the great recession,” he said. “This is now reality.”
His 2015 budget, recently adopted by Parliament, contains several optimistic forecasts that Greece’s creditors are disputing. He has also given citizens some respite from heavy taxes, by offering them the ability to pay in small increments over a long period of time.His 2015 budget, recently adopted by Parliament, contains several optimistic forecasts that Greece’s creditors are disputing. He has also given citizens some respite from heavy taxes, by offering them the ability to pay in small increments over a long period of time.
“When the current Parliament elects a president at the end of the month the clouds will be gone,” he said “and the country will be ready to officially enter the post-bailout era.”“When the current Parliament elects a president at the end of the month the clouds will be gone,” he said “and the country will be ready to officially enter the post-bailout era.”
Since 2010 Greece has received almost $296 billion in rescue funds. But recent negotiations over the next installment and a new line of credit that can be tapped in an emergency in the future have stalled, with Mr. Samaras complaining that the government won’t accept any “irrational and unjustifiable” proposals. Since 2010 Greece has received almost $296 billion in rescue funds. But recent negotiations over the next installment and a new line of credit that can be tapped in an emergency have stalled, with Mr. Samaras complaining that the government won’t accept any “irrational and unjustifiable” proposals.
Takis Chatzis, a political analyst and publisher of newpost.gr, said he believed that Mr. Samaras had chosen a risky route, and was unlikely to find the votes he needed. Takis Chatzis, a political analyst and publisher of newpost.gr, said he believed that Mr. Samaras was unlikely to find the votes he needed.
“My reading of the situation is that we will have an unbelievably polarized situation,” he said, " and that is dangerous for the country.” “My reading of the situation is that we will have an unbelievably polarized situation,” he said, “and that is dangerous for the country.”