Greece scrambles to avoid early elections

The race was on in Greece yesterday to forestall early elections -- and a possible blow to fiscal reforms -- hours after parliament failed to elect a new president.

Only 160 deputies on Wednesday supported the government candidate, former EU commissioner Stavros Dimas, far short of the 200 required.

The focus will now shift to December 23 when the parliament will vote in a second round, once again requiring 200 votes for Dimas to win.

"First ballot below expectations," commented the liberal daily newspaper Kathimerini, adding that as far as the government was concerned, "a battle may have been lost but the war can still be won."

Greece's stock market opened down, but quickly recovered with gains of 1.18 percent in a sign that, for now at least, the financial sector is holding its nerve.

Last week, the Greek stock market lost around a fifth of its value.

The clock is ticking on chances to avoid a political crisis that could in turn derail painful economic reforms aimed at putting one of the European Union's most troubled economies back on track.

"Without a last-minute change (in the political scene) it will be difficult to avert early elections," argued political analyst Thomas Gerakis.

The race was on in Greece yesterday to forestall early elections -- and a possible blow to fiscal reforms -- hours after parliament failed to elect a new president.

Only 160 deputies on Wednesday supported the government candidate, former EU commissioner Stavros Dimas, far short of the 200 required.

The focus will now shift to December 23 when the parliament will vote in a second round, once again requiring 200 votes for Dimas to win.

"First ballot below expectations," commented the liberal daily newspaper Kathimerini, adding that as far as the government was concerned, "a battle may have been lost but the war can still be won."

Greece's stock market opened down, but quickly recovered with gains of 1.18 percent in a sign that, for now at least, the financial sector is holding its nerve.

Last week, the Greek stock market lost around a fifth of its value.

The clock is ticking on chances to avoid a political crisis that could in turn derail painful economic reforms aimed at putting one of the European Union's most troubled economies back on track.

"Without a last-minute change (in the political scene) it will be difficult to avert early elections," argued political analyst Thomas Gerakis.