-Originally Transmitted Sunday at 20:11 EST

By Angelika Papamiltiadou

ATHENS (MNI) – Greece is entering a new phase of uncertainty as the
two biggest pro-austerity parties, conservative New Democracy and
socialist PASOK, which had exercised a monopoly on voters’ choice since
the 70’s, failed in Sunday’s elections to get the necessary combined 151
parliamentary seats in order to form a coalition government.

According to the final estimates released by the interior ministry
and with 66% of the votes counted, New Democracy will get 18.8% of the
votes and 108 seats. PASOK, after 38 years of receiving percentages of
over 40%, has fallen to third place with 13.3% of the votes and 41 seats
versus the 161 seats it obtained in the 2009 elections.

The two parties thus have a total of 149 seats, two short of the
working parliamentary majority. This means that they will be forced to
seek a third ally, but it will be difficult as the other two smaller
pro-austerity parties don’t reach the 3% limit for parliament
representation.

Leftist SYRIZA party is emerging in second place and will become
the main opposition party with 16.6% of the votes and 51 seats. Its
leader, Alexis Tsipras, has campaigned vigorously against the austerity
measures and the lending agreements and has completely ruled out any
cooperation with New Democracy and PASOK.

On the contrary, Tsipras has stated, SYRIZA will seek to form a
coalition of leftist parties if he gets the mandate to form a government
and “will try to annul the lending agreements” signed by the previous
governments.

The forth party, “Independent Greeks,” a newly formed right-wing
entrant, gets 10.5% of the votes and 33 seats. Its leader, Panos
Kamenos, was a member of New Democracy but was written off its lists
after openly disagreeing with the party’s decision to support the second
bailout package.

Kamenos said he will not cooperate with New Democracy or PASOK.

The fifth party is Communist KKE with 8.5% of the votes and 26
seats. Its leader, Aleka Paparega, stated it will not cooperate with any
other party, whether left, center or right.

The fifth party is ultra-nationalist “Golden Dawn” with 7% of the
votes and 22 seats. Its fascist approach excludes it from any
negotiations.

The seventh and final party to participate in the parliament, is
center-left “Democratic Left” which gains 6.1% of the votes and 19
seats. Its leader Fotis Kouvelis said he is against the austerity
package but in favour of the euro. This party is being regarded as the
key for the success of any coalition government as it could potentially
agree to join a coalition if a growth plan is put into effect and the
fiscal tightening is relaxed a little.

The uncertainty of the results has some analysts speaking of new
elections in June.

However, in his statements earlier, New Democracy party leader
Antonis Samaras vowed to do his best to form a government. “I will not
leave Greece hanging without a government,” he said.

If Samaras fails to get the necessary support within three days,
the mandate to form a government will be given to the second party, and
so on.

“I am ready to take the initiative and form a national unity
government. I have asked for an absolute majority but the people decided
differently. I will respect that. Today’s result reflects the
frustration of the Greek people for the dead-end economic policy that
had no growth prospect,” Samaras said.

In his statement, PASOK party leader Evangelos Venizelos
acknowledged his defeat but stressed it was difficult to form a
coalition government with the conservatives as it would be too fragile.
He suggested forming a government with as broad a coalition as possible.

Furthermore, he said that the new government should be “pro euro”
in order to secure Greece’s membership in the eurozone.

Venizelos acknowledged that this “was a painful day for PASOK,”
saying his party had paid for assuming sole responsibility for the
austerity measures.

Leftist SYRIZA party leader Alexis Tsipras attacked Germany and its
pro-austerity policies.

“Pro-austerity parties are now a minority and everyone should
accept that. Their signatures are not valid. It is clear that the
policies of [German Chancellor] Angela Merkel have failed,” Tsipras
said.

According to the Greek electoral law, the total of 250 seats will
be distributed on the basis of proportional representation, with a
threshold of 3% for entry into parliament. The other 50 seats will be
awarded to the leading party majority achieved by a party or coalition
of parties that command at least one half plus one (151 out of 300) of
total seats.

Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com

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