NEWS,11.05.2012.

Greek parties scramble to avert new election

 

The leaders of Greece's once-dominant political parties make their final effort today to form a coalition and avert a new election, which a poll showed would all but wipe them out and give victory to a radical leftist who rejects an EU bailout.The overwhelming majority of Greeks want to stay in the euro zone but voted last Sunday for parties that reject the severe terms of a bailout negotiated last year.European leaders say Greece will be ejected from the common currency if it turns its back on the package of tax hikes and wage cuts.Socialist PASOK leader Evangelos Venizelos, whose party once towered over Greek politics but placed a distant third in the election, will be the last politician given a chance to form a Government.He was due to meet conservative rival Antonis Samaras, whose New Democracy party came first in the election, but who has already failed to form a coalition.If Venizelos fails as well, all parties will have one last chance to try before a new election must be held in the coming three to four weeks.PASOK and New Democracy jointly negotiated the 130 billion euro EU/IMF bailout in a reluctant coalition last year and now are the only parties in Parliament that support it.Enraged voters punished them by reducing their combined share of the vote from 77 % to 32 % at last Sunday's election, leaving them two seats short of forming a coalition Government.Samaras and Venizelos may be hoping Greeks, frightened by the prospect of hasty ejection from the euro, will return to the two traditional mainstream parties if the election is re-run next month.But a new poll showed the main beneficiary of a new vote would be the hardline Left Coalition SYRIZA, whose leader Alexis Tsipras rejects the bailout and has demanded it be torn up.The first opinion poll to be published since the election showed SYRIZA would win with 27.7% of the vote, almost 11 points up on their election result, consolidating votes that had been split among smaller anti-bailout groups.Under a rule designed to make it easier to form a Government, the party that places first gets 50 bonus seats in the 300 seat Parliament.Those seats went to New Democracy on Sunday. If SYRIZA were to win them in a new election, the marginalisation of the once-mighty parties would be complete and it would be impossible to form a Government supporting the bailout.Venizelos's hope of reaching a last-ditch deal have rested with the Democratic Left party, a small moderate splinter group.But its leader, Fotis Kouvelis, insisted on Friday he would not join a coalition with the pro-bailout parties unless anti-bailout parties were also included and the new government pulled out of the loan deal."Our proposal for an ecumenical government seeks to ensure the participation of all those forces that can serve two aims: the gradual disengagement from the loan agreement and staying in the euro zone", Kouvelis told Skai TV.One socialist party official said on Thursday there was a "very slim" chance for a coalition if Kouvelis agreed, "but his party is split right down the middle."The political deadlock has prompted warnings by European leaders that Greece could be thrown out of the euro if it does not stick to the spending cuts and economic reforms required by the bailout.German Finance Minister Wolfgang Schaeuble said Europe and the IMF were still determined to help Greece, but the country could not be helped if it did not help itself.The EU and IMF say they will not give Greece any more money under the bailout until it has a government in place that renews its commitment to the terms agreed last year. Greece could run out of money as soon as the end of June if the loans stop."We do not have an infinite amount of time. Time is flying because there are financing needs, but the first steps have to be taken now from the Greek side," European Central Bank governing council member Ewald Nowotny said in Vienna.A senior SYRIZA party official said European leaders were bluffing by threatening to eject Greece from the euro to force it to stick to the bailout terms."Not only can't Greece be kicked out of the euro, they will be begging us to take the money," because if Greece were kicked out the crisis would spread to other European countries and the euro would collapse, said Dimitris Stratoulis.The prospect that Greece might declare bankruptcy and be pushed out of the euro caused panic across the single currency zone last year. But since then, European banks have written off the value of most of their Greek debt, which makes them less susceptible to shock if Greece should default.

Hollande worth $1.9 million

 

Francois Hollande, the Socialist 'Mr Normal' who will be sworn in as French president next week, says he is worth almost $1.9 million, considerably less than his predecessor Nicolas Sarkozy.Hollande, who campaigned on a promise to ditch the showbiz style that won Sarkozy the nickname of 'President Bling Bling', says in a declaration published on Friday that his principal asset is a house on France's southern Riviera coast.The declaration shows that Hollande, who rents his apartment in Paris but could now move into the presidential Elysee Palace, has declared assets of 1.17 million euros, primarily the house of 130 square metres in the chic Riviera village of Mougins.Other assets declared are bank accounts worth 8,200 euros, a life insurance contract worth 3,550 euros and 15,000 euros of furniture, said the declaration.The man who used to travel to work by scooter, and described himself as 'Mr Normal' during campaigning, does not own a car, the declaration says.Sarkozy, who hands the reins over to Hollande on May 15 and may go back to work as a lawyer, said in an official declaration in March he was worth about 2.7 million euros, up from 2.1 million when he took power in 2007.Most of that is in life insurance products but Sarkozy also declared a collection of autographs, watches and statuettes worth 100,000 euros, and a joint bank account of 57,000 euros he shares with his wife, the singer and former model Carla Bruni.Hollande's wealth falls just below the threshold that would make him liable to pay wealth tax in France.His French Riviera residence was bought in 1986 for just over half its current declared value and is the place where he spent summer breaks with former partner Segolene Royal, with whom he had four children in a quarter of a century together.He now lives with Valerie Trierweiler, a journalist who says she wants to remain working mother to pay the way for three sons she had before meeting Hollande.Hollande, whose doctor father Georges dabbled in property investment, said in his declaration he had part ownership of two apartments in Cannes that are worth 370,000 euros in all.Among the first measures he says he will implement after he takes over is a 30 percent cut in the presidential salary of more than 19,000 euros a month.