Greek PM to call for snap election on September 16

ATHENS, Aug 16 (Reuters) Greek Prime Minister Costas Karamanlis will request a snap election for September 16 when he meets the president tomorrow, the government said today.

Karamanlis is determined to continue with economic and social reforms that have won praise from the European Union but have damaged the conservative government's popularity at home, government spokesman Theodore Rousopoulos said.

''He will pass on a proposal of the government for elections on September 16,'' he told reporters.

''The government, fully responsibly, asks the Greek people to decide on the future of the country, renewing their trust and giving a second strong mandate for another four years.

''Since 2004 the country has steadily moved ahead. The reforms started and they are already bearing fruit. A lot more needs to be done,'' Rousopoulos said.

Karamanlis will hold his last cabinet meeting before his meeting with President Karolos Papoulias at the Presidential Mansion at 1530 hrs. Karamanlis will then make a statement.

An election was due by March 2008. Karamanlis had come under pressure from ministers to go to the polls early as the ruling party's popularity fell.

Recent opinion polls show Karamanlis's conservatives leading the main opposition socialists by only 1-2 per centage points.

The socialists have been pushing for an election since the start of the year. They opt for a ''Scandinavian model'' of pro-business policies coupled with solid welfare.

''Greeks have seen their rights reduced, their salaries reduced and their expectations crushed,'' socialist PASOK party spokesman Petros Efthimiou said today.

The ruling New Democracy party swept to power in 2004, ending 11 years of socialist rule. It has been praised by the European Union for turning the economy around, cutting deficits and pushing through reforms and privatisations.

But it has faced increasing protests at home over unpopular belt-tightening measures, slow social reforms and a series of political and economic scandals.

''What is at stake is the speed of reforms. Regardless of the election result, the path of fiscal policy is set, as is the need to tackle social security reforms,'' Emporiki Bank deputy general manager Spyros Pantelias told Reuters.

''A key prerequisite to tackle this challenge effectively will be a comfortable majority in parliament.'' The prospect of the first five-party parliament following election law changes, instead of the traditional four parties, could prove a thorn in the side of the election winner.

Reuters SZ VP0112