KARAMANLIS PREPARING FOR EARLY ELECTIONS

C O N F I D E N T I A L ATHENS 001639 SIPDIS SIPDIS E.O. 12958: DECL: 08/14/2017 TAGS: PREL PGOV GR SUBJECT: KARAMANLIS PREPARING FOR EARLY ELECTIONS Classified By: Political Counselor Robin Quinville. Reason: 1.4 (b) a nd (d). ¶1. (C) Former FM Molyviatis told Charge on August 16 "with absolute certainty" that the PM had decided in favor of elections on September 16. PM Karamanlis plans to see President Papoulias on August 17; Parliament will be dissolved on August 18 to allow for the requiste campaign period. ¶2. (C) The politically savvy have claimed for weeks that PM Karamanlis would hold elections by the end of September, rather than waiting until his term expires in March. In fact, the ND government has been showing voters the money, clearly hoping to answer domestic economic concerns. The measures include: -- Draft legislation to introduce new supplementary benefits for pensioners, a "special benefit" plan for the judiciary, permission for public sector retirees to collect 25 percent of a deceased spouse's pension in addition to their own; -- An 8.2 percent salary increase for military officers and corresponding ranks in the National Police, Fire Service, and Coast Guard; -- Draft legislatin to create a "Fund Against Poverty" offering a maximum 1000 Euro suplementary benefit to families with an income below the poverty level (or single-parent families); -- Early dispersal of 2008 farm subsidies in fall 2007; -- A National Zoning Plan to create a 1,250 acre municipal park on the site of the old Hellenikon international airport (generating construction contracts); -- Re-constitution of the Ranger Service, creating jobs for 1,000 rangers. ¶3. (C) Molyviatis said that PM Karamanlis was confident that ND's 3 percentage point lead in the polls is holding. Molyviatis did not anticipate that breaking news of another fire, this time on Mount Pendeli near the Athens suburbs, would change Karamanlis's decision. COUNTRYMAN