FRUSTRATED NEW DEMOCRACY PARLIAMENTARIANS BEHAVING

C O N F I D E N T I A L ATHENS 002120

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/26/2017
TAGS: PREL PGOV GR
SUBJECT: FRUSTRATED NEW DEMOCRACY PARLIAMENTARIANS BEHAVING
BADLY

Classified By: Political Counselor Robin Quinville. Reason: 1.4 (b) a
nd (d).


1. (C) SUMMARY: Just weeks after the New Democracy
government's re-election, a small nmber of disappointed ND
MPs have begun behavig badly. Normally, their verbal pot
shots at Karamanlis would make few waves in the media or with
the public. But Karamanlis's two-seat prliamentary majority
gives every sign of disagreement greater status. ND insiders
discount reports of infighting, blaming disappointed
ex-ministers for trying to make Karamanlis's life difficult.
And so far, opposition PASOK's leadership crisis has masked
this mini-rebellion. Karamanlis is wielding the threat of
"snap" elections to keep MPs in line, while proceeding
cautiously on the policy front. END SUMMARY.


2. (C) A month after elections gave him a precarious two
seat majority (152 seats in a parliament of 300),Karamanlis
is struggling to maintain his government's aura of solidarity
and confidence. His main problem children are two former
members of his cabinet (now MPs): ex-Public Order Minister
Vyron Polydoras and ex-deputy Culture Minister Petros
Tatoulis. The outspoken Polydoras has found it tough to hide
his anger at being ousted from his Ministerial post, and has
openly criticized both the PM's office and ND party
administration. Tatoulis, for his part, is threatening to
vote against a new ND-sponsored electoral law scheduled for
consideration in early 2008. Other ND MPs have also taken
pot shots at Karamanlis, including former Minister for the
Aegean Pavlides and former deputy Health Minister
Yannopoulos.


3. (C) ND sources tell us that party "infighting" is not
serious, merely two disappointed office seekers letting off
steam. They do not believe that either Polydoras or Tatoulis
will declare himself an "independent," reducing Karamanlis's
majority. Karamanlis is reportedly wielding the threat of
"snap" elections to keep ND parliamentarians in line. "Snap"
elections (i.e., held less than 20 months after the previous
election) would give Karamanlis greater control over the
candidates for parliamentary seats; he would therefore find
it easier to oust his opponents. Some ND MPs question
whether Karamanlis would take the risk of returning to the
polls, given his narrow victory in September.


4. (C) On policy issues, Karamanlis is taking a cautious
approach. Most believe he will focus on economic reform,
taking small steps on the pension system without offering a
comprehensive (and controversial) way forward. Karamanlis is
reportedly unhappy that his capable Economy minister
Alogoskoufis went public with a proposal to raise taxes -- a
policy that Karamanlis had specifically rejected during the
election campaign.
COUNTRYMAN