Socialists given mandate to form Greek government

Papandreou, a 57-year-old former foreign minister whose father and grandfather were both prime ministers, had insisted that Prime Minister Costas Karamanlis' plans for austerity in the face of Greece's worst economic crisis in years were wrong. Instead, he offered a more optimistic solution, saying he would inject up to euro3 billion (US$4.4 billion) to reinvigorate Greece's economy.

After a campaign fought almost exclusively on economic issues — and following widespread anger over repeated scandals that had already whittled away support for Karamanlis' conservative government — voters were persuaded.

Near-final results, with 99.72 percent of votes counted, showed Papandreou's Panhellenic Socialist Movement, or PASOK, had swept to victory with 43.92 percent after five years of conservative governance, with Karamanlis' New Democracy trailing with 33.48 percent — the party's worst showing ever. Humbled by his defeat, the 53-year-old Karamanlis, who stormed to power in 2004 to become the youngest prime minister in modern Greek history after more than a decade of socialist rule, resigned as leader of the party founded by his late uncle and former prime minister, Constantine Karamanlis, 35 years ago.

He visited President Karolos Papoulias Monday to hand over control of the government, having himself driven to the presidential mansion from the neighboring prime minister's office to avoid reporters and TV cameras.

Sunday's election gave PASOK a solid parliamentary majority of 160 seats in the 300-member body, ending two years of a government that held a razor-thin majority. Karamanlis won re-election in 2007 with 152 seats, but soon saw that drop to 151 after a series of scandals and rebellions from within his party ranks.

New Democracy will now hold just 91 seats, with the communist KKE party coming in third with 7.54 percent and 21 seats, followed by the nationalist LAOS with 5.63 percent and 15 seats. Another left-wing party, SYRIZA, won 13 seats with 4.59 percent.

Papandreou's victory, along with a recent win by socialists in Portugal, bucks a trend in which conservatives have surged in Europe's powerhouse economies, including Germany, where Chancellor Angela Merkel won re-election last week.

U.S. President Barack Obama was among the first international leaders to congratulate Papandreou, telephoning him Sunday night, the White House said.

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