by talos
Sun Oct 4th, 2009 at 04:38:17 AM EST
Greece is holding parliamentary elections, today, Sunday, October 4. I have mentioned some basic facts about the road to the early elections announced by Kostas Karamanlis, the current, though not likely future, prime-minister, in a comment a couple of weeks ago.
The rather subdued electioneering is in full swing now, with both debates (the broad debate with all six europarliamentary parties present and the duel between George Papandreou and Kostas Karamanlis) broadcast already and party candidates and cadres running from tv studio to public gatherings and using everything from spam sms messages to postal brochures to attract attention.
Front-paged by afew
As I have mentioned previously, there seems to be little doubt that the Socialists (PASOK) will emerge as winners. In fact most analysts predict that PASOK will manage to attain a parliamentary majority in most scenarios (in fact the only thing that might prevent that is the Green party scoring more than 3% but that seems like an off-chance right now). But things will remain quite difficult, and even the Socialist's sparse and vague "green" and "worker protection" election promises will prove hard to keep. In fact Karamanlis is running on what appears to be a losing strategy of "we will give you hell, but in the end we'll emerge from the long tunnel", promising bitter medicine and public frugality for at least the next three years. It isn't working and Nea Dimokratia, the conservative party, is heading towards possibly one of it's largest electoral defeats, and will be hard pressed to avoid a record low polling tally (at ~35% currently, from 1981). Yet what Papandreou can realistically promise is constrained too:
Joaquin Almunia, European Union commisioner for economic and monetary affairs, has told both big parties that pre-election promises should not ignore the obligations of Greece under the Lisbon Treaty, which requires strict financial regulation of member states of the Euro zone.
While Almunia and Mrsnik's advocacy of economic liberalisation conflicts with the implicit call for social-friendly policies in GSEE's report, they all confirm the nightmarish scenario that the dynamic of the old economic development model is now exhausted. This was based on cheap international credit, European structural funds, high consumption, and high values for real estate.
So the promises are for now more rhetorical than actual commitments.
Now, IMMHO it seems bizarre that the EU Commission would call for fiscal discipline, deregulation and privatization, after the current mess, which is what Almunia is recommending, but the net result is that either way the economic situation will surely deteriorate - given that banks are not lending and businesses are already closing down. Already the unemployment figures are sky-high (though the definition of who counts as unemployed seems to be shifting steadily), especially among the youth, and part time, precarious work is spreading everywhere - while at the same time the unemployment benefits are a joke (~400 Euros for a very limited time).
Anyway the business community doesn't seem to care who wins as long as someone does: As Deutsche Bank noted:
Pending to know the final outcome of the elections, the possible coalitions and keeping in mind that the two major parties do not have clear differences in policies/programs, the main risk is that Greece could be dragged into a prolonged election process assuming no party manages to win majority and form a government
Yesterday, five insurance companies were shut down, exposing some rather serious regulatory omissions over the past few years.
On the left side of the political spectrum (and I repeat that I am helping along with SYRIZA's campaign so I am not really impartial), KKE is expected to score its standard 7,5-8,5 % (more or less), while SYRIZA, having failed miserably to maintain anything from its impressive poll ride that reached 18% a year and a half ago), almost managed to commit electoral suicide through bickering and infighting so irrational IMHO, that it had people questioning whether the party's core 3% would show up on election day. The latest opinion polls predict the party's survival (an electoral coalition that is quite a lot like Bloco Esquerda, mentioned in Torres' Portugese election thread, only, if anything, even more diverse). But it could be tight. The Greens will most probably not make it past the 3% electoral limit.
Opinion polls are not allowed to be made public 15 days prior to the elections so we don't know what the polls will come up with exactly. But as I said I don't think PASOK can lose, though I'm not certain about the margin and the outright parliamentary majority (somewhere between 15-25% of the electorate, depending on the poll, either don't answer, won't vote, or haven't made up their minds about who they'll vote for). We'll have to wait and see...