Simitis victory allows him to chart his own course

Date: 26/09/1996

By Rory Watson

VICTORIOUS Greek Prime Minister Costas Simitis will point his country on a clear course towards entry into the single currency zone after his political gamble of calling an early general election paid off this week.

Simitis' electoral victory will enable him to step out of the shadow of his predecessor, the late Andreas Papandreou, as premier, and stamp his authority on his Panhellenic Socialist Movement (Pasok) and the country at large.

With an overall 12-seat majority in the 300-member parliament, Simitis was free for the first time since he took over the premiership nine months ago to appoint a cabinet which reflects his own views on the EU, the economy and Greece's relations with its neighbours, especially Turkey.

“The people showed they want a new course for Greece and society. This great victory belongs to all citizens who envision a better future. This victory belongs to all who believe in development coupled with social justice,” said Simitis as he prepared for a new four-year term in office.

Winning approval for a tough 1997 budget, which is likely to introduce spending cuts of 1 billion ecu in a bid to reduce the country's overall deficit to 4.2&percent; of its Gross Domestic Product (GDP), will be among the first challenges to be faced by the new government.

This target compares with a probable 7.6&percent; deficit at the end of this year, but is still well above the 3&percent;-of-GDP limit agreed as a key criterion for membership of the single currency bloc.

The government is expected to keep up its fight against tax evasion and to speed up its privatisation programme with the sale of several state banks and flotation on the Athens Stock Exchange of its minority share in the Public Petroleum Corporation.

Although determined to introduce a new, more sober, political style in Greece after more than a decade of the exuberant rhetoric and maverick policy stances of his predecessor, Simitis was forced to change tack in the final week of campaigning before last weekend's election.

His revised tactics of recalling the glory of Papandreou's era, when the country's extensive welfare state was established, and of promising to care for the less well-off ensured Pasok 42&percent; of the vote, 3&percent; more than the 39&percent; won by its centre-right New Democracy opponents.

The result was Simitis' third major political victory this year after successively defeating opponents to win first the Greek premiership and then leadership of Pasok.

The election also claimed a major victim: New Democracy leader Miltiades Evert. As soon as defeat became inevitable, Evert resigned from the post he had held for three years and, in a brief statement, took “personal responsibility for the election result”.