Greek conservatives lead in exit polls

Greece's ruling conservatives appeared headed for an outright majority in to day's parliamentary election, an exit poll said, …

Greece's ruling conservatives appeared headed for an outright majority in to day's parliamentary election, an exit poll said, after a campaign marred by forest fires and scandals.

Opinion polls had shown neither conservative Prime Minister Costas Karamanlis or socialist leader George Papandreou, both heirs to prominent political dynasties, easily winning a majority in parliament and raising the prospect of coalitions.

But an exit poll by Kapa Research showed the ruling New Democracy party winning 41.9 per cent of the vote and 152 seats in the 300-seat parliament.

The poll, which has a 1 per cent margin of error, showed the Socialists coming in second with 38.4 per cent of the vote and 103 seats in parliament.

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In a 2004 victory, New Democracy won 165 seats.

Smaller parties were seen getting a substantial boost, with the far-right LA.O.S, entering parliament for the first time.

The elections was seen as key for the pace of economic reforms Greece needs to catch up with its euro zone partners. The winner will face tough tasks, such as unpopular privatisations and shoring up an ailing pension system.

Mr Karamanlis called the early vote confident he could secure an easy victory, but criticism of the government's response to the forest fires which killed 65 people in August and a series of scandals may have harmed his chances.

Political analysts said PASOK appeared unable to capitalise on the government's woes, with many voters not ready to forgive the socialists for their own scandals while in power.

Mr Karamanlis, nephew of the late statesman Constantine Karamanlis, has cut deficits and created 200,000 jobs but unemployment is above the EU average despite a healthy 4.4 per cent GDP growth rate this year.

Brussels has said more reforms are needed. About 20 per cent of Greeks live below the poverty line and per capita GDP is the lowest next to Portugal's in the euro zone.

PASOK favours pro-market policies with strong social protection, promising tax breaks and better pensions.

The son of the late prime minister Andreas Papandreou, George Papandreou has not ruled out cooperating with other parties. Mr Karamanlis has said he would rather call a new election than form an uneasy coalition.