Greece elects youngest PM for Olympian tasks

In a conservative comeback that was expected but surprised by its size, Costas Karmanlis lead his New Democracy Party to a sweeping general election victory on Sunday that ended 11 years of socialist rule.

Karmanalis, 48 this year, and the nephew of a former prime minister of Greece, wasted no time in getting down to business.

Before even making his victory speech, he met Athens Olympics chief organizer Gianna Angelopoulos, herself a former conservative parliamentarian, to plot strategy to get stalled work up to speed on the August Games.

"We are here today not to gloat but to state that from tomorrow we start work," he said in a speech to cheering supporters.

"We must make the best efforts so the Olympic Games are the best and safest ever held. It is a great opportunity for Greece to show its modern face."

Karamanlis, the only modern Greek prime minister aged under 50, also won the battle of the Greek political dynasties sending socialist leader George Papandreou into the wilderness for the next four years.

Papandreou, son and grandson of former prime ministers, had entered the fray late in a desperate bid by the socialists to use their popular and respected foreign minister to claw back a conservatives opinion poll lead of up to seven percent when the election was announced last January.

But with most of the vote counted, the conservatives were heading for up to 170 seats in the 300-member parliament. In the 2000 election, the Pan Hellenic Socialist Movement (PASOK) won 158 seats and New Democracy, under Karamanlis, won 125 seats.

Karamanlis described the victory as "a new policy in a new era" and vowed younger leaders like he would be in the cabinet he is expected to announce later on Monday.

Karamanlis, a U.S.-educated lawyer, takes power just five months before the August Olympic Games, a massive security and logistical operation for which preparations are behind schedule.

Quick decisions are also needed to reunite Greek and Turkish Cypriots before the island joins the EU in May.

The new government’s other main tasks during its four-year term include tackling inflation, rising prices since the adoption of the euro and nearly 10 percent unemployment.

Papandreou admitted in a concession speech there had been voter fatigue with the socialists’ long years in power. "When I started (as party leader) a month ago I realized we had made mistakes and that we were tiring," he said.

Karamanlis told Reuters earlier this week he would work to bring foreign investment to Greece and step up privatization of state firms if his party won the parliamentary poll.

"The world will see a country in Europe which will follow a policy directed at attracting foreign investment and privatizing big public enterprises," Karamanlis said.

Analysts said the resounding victory strengthened Karamanlis’ hand in a likely standoff with traditionally hostile unions who support the socialists.

"If the results confirm a significant win, it will be a strong vote of confidence, giving the government the authority to go ahead with changes," said Platon Monokrousos, economist at EFG Eurobank.