BURSON-MARSTELLER INSIGHT

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In elections on 6 May the people of Greece gave a stunning rebuff to the two mainstream political parties and turned to the radical left and extreme right in an election that has highlighted discontent in the country with punishing austerity measures. The Socialists (PASOK, who had previously been the largest party in the Greek Parliament) finished third on just 13.2%, behind radical left-wing party SYRIZA (16.8%) and the centre-right New Democracy (ND - 18.9%). Together, PASOK and ND, the mainstays of Greek politics, won less than a third of the vote - a historic low. In the previous elections in 2009, they won the votes of more than three-quarters of voters. Two new parties from the right and left - ANEL and DIMAR respectively - entered Parliament, and the Communists (KKE) increased their score. Most shockingly, the extremist Golden Dawn party scored nearly seven per cent. Nearly 20% of votes went to parties that did not reach the three per cent threshold for entering Parliament. The composition of the assembly mean that it will be extremely difficult to form a government: ND has already failed, and SYRIZA has now been given a small window to seek to form a coalition. It seems likely that there will be new elections. The results have plunged Greece - and the eurozone - into fresh turmoil. passed to SYRIZA (which, on 9 May, is halfway through the threeday period it is granted to find partners). There is an increasing likelihood of fresh elections on 17 June. These elections mark the end of the de facto two-party system that has reigned since 1974. The two traditionally main parties, New Democracy (ND, centre-right) and PASOK (centre-left), saw their share of the vote drop dramatically. The electorate seems to have punished the two parties for their support of tough austerity measures agreed with Greece’s international creditors. These elections had the shortest election campaign in modern Greek history. Although it had been decided in December to delay elections until at least late April (to allow the technocratic government to pass austerity measures), the official date was not announced until 11 April. This left parties with less than four weeks to persuade voters. Against the backdrop of austerity measures and the spectre of the country’s bankruptcy, campaigns were run on whether parties were for the bailout and reform programme (’memorandum parties’, referring to the agreements between Greece and the International Monetary Fund (IMF) and the European Union) or against (’anti-memorandum parties’).

The short, single-issue campaign resulted in radicalisation: disaffected ND and PASOK voters deserted these once-dominant parties who had formed a unity government and accepted the unpopular terms and austerity of the second bail-out. Support for these parties fell to its lowest level since 1974, when Greece emerged from a seven-year dictatorship. Smaller parties benefitted: in an overwhelming ‘antimemorandum’ vote, the biggest winner was the Coalition of the Radical Left (SYRIZA), which finished second, winning 52 seats in the Greek Parliament. The extreme-right Golden Dawn (which denies being neo-Nazi, insisting it is nationalist and patriotic) won 21 seats; the right-wing Independent Greeks (ANEL) won 33 seats in their first election. The radical right-wing Popular Orthodox Rally (LAOS) was punished for its brief participation in the threeparty caretaker government led by Lucas Papademos, and saw its vote shrink below the three per cent needed to enter Parliament. The results highlight the anger and despair of the Greek people, who called for a drastic change in the political landscape and disengagement from the bailout agreement with the IMF and EU. No party won enough votes to form a government. ND already stated that it could not form a coalition, and so the baton was

For the first time since the restoration of democracy in 1974, seven parties will form the Parliament. Other parties won nearly one-fifth of the vote, but failed to overcome the three per cent threshold for entry into Parliament. New Democracy (ND), as the leading party, won a bonus of 50 seats, with the remaining 250 allocated proportionately. This electoral law is designed to allow the formation of a government by a single party gaining around 40% of the vote. Given the support for parties that failed to enter Parliament, it was theoretically possible to form a government with 35-37% - but no single party won more than 19%.

Coalition of the Radical Left (SYRIZA): led by Alexis Tsipras, this coalition of several left-wing political parties is pro-European but anti-memorandum - a stance that seems to have won the favor of many voters, who were unhappy with the Socialists (PASOK). It is the only left-wing party that has openly proposed a left-wing coalition government. SYRIZA has quadrupled its share of the vote in comparison to the 2009 parliamentary elections. Golden Dawn: This extreme-right party has links to neo-fascist movements around the world. This is the first time it won enough votes to enter the Parliament, with an impressive 21 seats. The result can be attributed to increasing security concerns and antiimmigration sentiments that are prevalent among many citizens. Independent Greeks (ANEL): Founded less than two months ago by an ousted ND MP, Panos Kammenos, this right-wing, anti -memorandum party focused on the preservation of national sovereignty and attracted conservative voters from ND and LAOS. Democratic Left (DIMAR): Founded by dissident SYRIZA MPs, later joined by disaffected members of PASOK, DIMAR represents a milder left-wing approach than SYRIZA and wants to play a constructive role in the governance of the country. Led by Fotis Kouvelis, it opposed welfare cuts and the deregulation in the labour market while advocating that Greece stay in the euro (with a renegotiated economic adjustment and growth programme). Communists (KKE): the KKE played a key part in recent antiausterity protests in Athens and was hoping for an increase on its previous score of 7.5% (it actually achieved an increase of less than one percentage point, and lost its leadership of the radical


Parliamentary elections Votes     

Composition of Parliament

Key facts from an extraordinary election

 32 political groupings participated in the election  Turnout was 65.1%, down from 70-75% up to 2009  PASOK scored only a third of their usual vote (13.18% in      

2012, compared to around 40% up to 2009) The vote for New Democracy (ND) halved from around 35-45% pre-2009 to just 18.85% in 2012 PASOK and ND had previously won around 75-80% of the vote; in 2012, they won less than a third of votes Nearly 20% of votes went to parties that failed to enter Parliament 44.5% of 18-24-year olds voted for SYRIZA, Golden Dawn or ANEL 40% of the voters made their choice in the last three days of the campaign; 20% made a decision on polling day The inability of the three liberal parties to join forces before the election left them all outside Parliament

left). It has been a consistent advocate of withdrawal from the EU.

New Democracy (ND): the main conservative centre-right party, it has been led by Antonis Samaras since 2009. Despite winning the most votes, ND saw its share decline to unprecedented lows. Mr Samaras had insisted on the need for elections as soon as possible and for an “autonomous New Democracy government”, rejecting pre-election agreements with other parties. Pan-Hellenic Socialist Movement (PASOK): the main centre-left party, it was led into this election by Evangelos Venizelos, a former finance minister. PASOK carried the ‘political cost’ of the austerity measures implemented during its time in government.

Several other parties did not win enough support to enter Parliament, including the Green Ecologists, a pro-euro party that is represented in the European Parliament, and Popular Orthodox Rally (LAOS), a right-wing party that withdrew its support from the coalition at the time of the second bailout programme. Other liberal, right-wing parties in favour of the memorandum and structural changes also failed to enter Parliament, including Democratic Alliance (DISY), led by a former ND MP and former foreign minister, Dora Bakoyannis, Drasi (Action), led by a well-known liberal politician, Stefanos Manos, and Recreate Greece, a newly-formed party of nonprofessional politicians, who managed to achieve 2.15% in their first elections.

On Monday 7 May the President of Greece gave Antonis Samaras, the leader of New Democracy (ND), a mandate to lead talks to form a government. Despite having a three-day window to negotiate with other parties, Mr Samaras said on the same day that he was unable to form a government. The baton has now been passed to Alexis Tsipras, the leader of SYRIZA. He has already rejected calls from ND and PASOK for a so-called ‘national salvation government’ and will instead seek the support of other Left parties, such as DIMAR. While DIMAR’s leader, Fotis Kouvelis, seems positively disposed towards this idea, it is unlikely to see the light of day as the Communists (KKE) have said that they will not participate in any coalition government. Given the fragmentation of the Greek Parliament, it is very likely that fresh elections will follow. If SYRIZA or PASOK (which is next in line) fail to form a government, Parliament will convene on 17 May to appoint a transitional government to lead the country to new elections within one month. A second election will show whether the results of 6 May were a conscious choice of the Greek public or whether emotions controlled voters’ choices. Ahead of new elections, parties are set to take the time to form alliances in an effort to improve the chances of forming a government. Mr Tsipras is set to approach other left-wing parties, as well as the Greens, with the aim of potentially joining forces. ND and PASOK will also come under increased pressure - not least internationally - to cooperate and to form a grand coalition in favour of the memorandum. International creditors - and EU leaders - will be looking to this prospect as the best way of shoring up support for the euro and for the bailout measures. However, the people of Greece have made a clear statement that they are deeply unhappy with the current austerity measures that are the price of keeping Greece in the eurozone. Greeks may look to the election of François Hollande as President of France as a positive step in turning back the tide of austerity and an opportunity to persuade the German government popularly perceived as the instigator of the harsh economic conditions in Greece - to change course, or at least to modify it. However, the signals from Berlin are that the Greek reforms are to continue. If Sunday’s vote is confirmed in new elections, the prospect of Greece leaving the eurozone may become increasingly real. Original text by the team at Advocate/Burson-Marsteller, BursonMarsteller’s affiliate in Greece. Visit www.advocate-bm.gr


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