PASOK leader George Papandreou (left) waves to supporters who gathered in Eleftherias Square in Iraklion, Crete, yesterday to hear him speak. After a brief suspension as a sign of respect for the victims of the recent wildfires, Papandreou has resumed his campaign for the September 16 elections.

PASOK's fateful decision to nominate Athens-Piraeus Prefect Fofi Gennimata as a candidate in the September 16 election caused a stir within the Socialist party yesterday amid fears that vital ground has been lost in the poll race.

Yesterday's political scene was dominated by discussion of George Papandreou's decision to nominate Gennimata, only to have the Supreme Court block her candidacy because the Constitution does not allow local government officials to run for parliament.

Gennimata resigned on Friday but the court ruled that this still did not make her eligible.

Papandreou took the risky decision of naming Gennimata after being advised that there were unlikely to be any legal obstacles prior to the election and that, in the worst case, an electoral court would look into the matter after the poll.

Sources said that there is unrest within PASOK over the decision because it has detracted from the party's campaign, which aimed to focus on the government's weaknesses in the final two weeks.

This did not stop Papandreou from accusing the ruling conservatives of turning Greece into a «Third World banana republic.»

«A second opportunity for Mr Karamanlis will be an opportunity lost and put our country on the skids,» Papandreou told a rally in Iraklion, Crete.

PASOK was also in disagreement with New Democracy yesterday over the format of a planned televised debate of party leaders. The debate is likely to be held on Thursday night. ND wants the leaders of six parties to take part but PASOK wants only five. The Socialists also want a second debate, between Prime Minister Costas Karamanlis and PASOK leader George Papandreou. ND is against the idea.