Athens in limbo as radical leftist waits in the wings

 

By Damien McElroy, in Athens 9:38PM BST 16 May 2012

Greece appears set to elect an untested hard-Left political newcomer as its next prime minister after rival leaders set an election date of June 17 and installed a caretaker government with few powers.

Leader of the Radical Left party Alexis Tsipras leaves the Presidential Palace after his meeting with the President and the other Greek political leaders in Athens on Wednesday. Photo: AP

Popular support has swung to anti-bailout parties in the days since the country delivered an inconclusive election result on May 6. Deadlocked politicians forced a new election yesterday as polls showed that Alexis Tsipras of the Syriza party was likely to emerge as the leading force.

After meeting President Karolos Papoulias, whose powers are limited, heads of the seven parties which won seats in parliament named the new interim leader as Panagiotis Pikrammenos, who runs the supreme administrative court.

A new poll confirmed what others have shown: that radical left-wingers who reject the terms of a bail-out agreed with the EU and IMF are now poised for victory, and the establishment parties that agreed the rescue are sinking further.

An Athens University poll showed support for Syriza in the capital and suburbs had soared to 31.9pc. A second nationwide survey showed Syriza rising to 20pc, easily stronger than stalwart conservative New Democracy on 14pc.

With a top-up of 50 MPs to the first party and the support of like-minded Left-wingers, Mr Tsipras is well in sight of a majority in the 300-strong parliament.

 

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The Leftists argue they can tear up the bail-out and keep the euro, but European leaders say if Greece fails to meet promises, lenders will pull the plug on financing, driving Athens to bankruptcy and a swift exit from the euro. While most Greeks remain adamant the country should not jump out of the single currency, there is a growing feeling that the demise of the old two party system of New Democracy and its socialist rival Pasok is positive.

"It had to come, most of us think that the old parties had to die," said Militos Charalampidis, a music student who is emigrating to Finland in August in search of a career. "It's a shock for us but we are optimistic there can be a fresh start."

Reduced costs of labour either by devaluation from adopting a new Drachma, or by accepting lower wages, is something that Greeks who cannot go abroad appear ready to accept. Mr Charalampidis, 24, said he and friends were working by the hour for less pay and putting in longer working weeks than they had grown up to expect.

Greece's new MPs will gather to confirm the interim government and election today in a rump session that is to be the shortest in living memory. But for the markets the wait for a new government will cause strain.

As a venerable lawyer educated at Athens German school, Mr Pikrammenos can be expected to do little more than ensure internal order. He was sworn in last night overseen by Greek monks chanting prayers in the presidential palace.

Aleka Papariya, the head of the Communist Party, said that the interim government could not make any binding international commitments. Mr Tsipras further bound the hands of the stand-in leadership saying it should adopt no measures that would involve cuts in state salaries or public expenditure. He also demanded a freeze on the sale of state property, a key source of bail-out revenue.

One man on the Athens metro said he would welcome any respite: "I would say that we have lived for too long in historically interesting times. It is a curse for us."

Athens in limbo as radical leftist waits in the wings - Telegraph