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