Raging Greek fires cloud snap election campaign

ATHENS, Aug 28 (Reuters) Greece's deadly forest fires prompted fierce attacks on the government tiday, hurting its chances of winning elections next month and raising the prospect of post-election stalemate.

The five-day-old inferno might deprive the ruling conservatives of a majority in parliament in the Sept. 16 poll, seen as decisive for the pace of reforms needed if Greece is to catch up with its euro zone partners, political analysts said.

An opinion poll showed the ruling New Democracy losing ground. The survey was conducted partly during the raging fires that killed 63 people and sent thousands fleeing their homes.

''Obviously, at least in the first days, the fires have had a negative effect on the government but it is not clear whether this will be sustained until the elections,'' said Costas Panagopoulos, head of the ALCO agency that conducted the poll.

Analysts said the smaller political parties were most likely to benefit from the disaster, making it difficult for the winner to form a government without resorting to a coalition.

''The political scene has been clouded by the fires. It's a challenging time for the government,'' said Anthony Livanios, head of the Alpha Metrics polling company.

''I still see New Democracy ahead but the question is whether it will get enough parliament seats to form a government.'' Prime Minister Costas Karamanlis called the snap polls confident in his successful economic record and leading the opposition socialists by between 1 and 2 percentage points.

However, the fires have overturned the political scene and the ALCO poll showed the lead had shrunk to 0.8 points.

OPPOSITION ATTACKS Opposition parties seized the opportunity to attack the government, accusing it of incompetence.

''Mr. Karamanlis' government has disappointed the people,'' said Socialist PASOK party leader George Papandreou. ''It proved pathetically incompetent.'' Political analysts said issues such as reconstruction and the effectiveness of the state were likely to come to the fore in the campaign.

Karamanlis visited stricken areas and announced relief measures, calling on Greeks to unite in the face of the disaster.

He was also accused of trying to deflect criticism of chaotic rescue efforts by referring to an organised arson plan.

His public order minister said the country was facing an ''asymmetrical threat'', a term that has been used to describe terrorism.

Political leaders and most Athens newspapers said the government was inventing phantom enemies.

''The government must immediately drop these unacceptable scenarios that show desperation and panic,'' said the respected daily Eleftherotypia in its main editorial.

So far, only a few elderly people and two boys have been charged with setting fires.

About 2,000 leftists marched through Athens on Monday shouting ''down with the government'' and citizens unattached to political parties were organising a protest rally in the capital on Wednesday, calling on participants to wear black.

''This disaster will not go unpunished. You have left Greece in ashes. Why?'' wrote blogger Stefanos Stamellos, calling on the public to join the protest.

Reuters RKM VP0010