Amid harsh criticism, Greek prime minister wins again

ATHENS -- Conservative Prime Minister Costas Karamanlis weathered scathing criticism over his handling of deadly forest fires and financial scandals to win a second victory over the opposition Socialists on Sunday.

When Karamanlis, nephew of the country's late Prime Minister and President Constantine Karamanlis, took over in 1997 the party his uncle founded, some sniffed disparagingly that it was a clear case of nepotism.

He has since proven his mettle. He won a landslide victory in 2004, ending 11 years of socialist rule and launched strict fiscal policies that drove the budget deficit down to an expected 2.4 percent in 2007 from about 7.8 percent in 2004, winning praise from Brussels.

"I want to assure all Greeks that I will do my best to honour the mandate you have given me and prove worthy of your trust," he said after Sunday's victory.

U.S.-educated, Karamanlis briefly worked as a lawyer before winning a seat in parliament in 1989. He has a distinctly different style from his uncle, who founded New Democracy in the mid-1970s and guided Greece into the European Union in 1981.

For years Karamanlis was better known for his relaxed manner, casual dress and image as a good-time boy rather than as an ambitious politician.

He emerged as a last-minute surprise winner during a leadership challenge following the party's 1996 election defeat.

Narrowly losing the 2000 elections, Karamanlis moved the conservatives, who had not won an election since 1993, to the centre, dropping several far-right politicians from his party.

Karamanlis came to power in 2004 pledging to crack down on corruption, spur growth and improve the lives of Greeks.

The conservatives did reduce stubbornly high unemployment from 11.3 in 2004 to the current 7.7 and maintained a 4 percent growth, well above the euro zone average. But little trickled down to average Greeks, who took to the streets to protest a series of unpopular reforms and belt-tightening measures.

But even as his party wavered amid a series of scandals and deadly forest fires that killed 65 people last month, his personal popularity remained strong.

Days before the election, with polls showing no party winning an outright majority, Karamanlis ruled out any coalition urging Greeks to give him a clear mandate to push through reforms, needed as the country tries to converge with its euro zone members.

The gamble paid off, giving the conservatives a new mandate to tackle a series of major issues, including an ailing pension system expected to go bust in 15 years, and speed up structural reforms.

"In our new 4-year term, we will take steady steps towards a stronger economy, to fight poverty and support poor pensioners," he said on Sunday.