PM to accelerate reforms

Karamanlis says more changes to electoral legislation will boost stability

Prime Minister Costas Karamanlis (far right) in Parliament yesterday with members of the Cabinet. Karamanlis said that the New Democracy government intends to push ahead with reforms while also giving top priority to social policy. Changes to all levels of education, reforms that harmed the popularity of the conservative government during its previous term in office, will also be implemented in a bid to improve the quality of state education, added the prime minister.

Prime Minister Costas Karamanlis pledged yesterday to push ahead with reforms in his first parliamentary address since being re-elected and indicated there will be further changes to the electoral law.

Karamanlis, whose conservative party won the September 16 elections with a slim majority of 152 seats in the 300-seat Parliament, said that the government will accelerate the implementation of reforms in various sectors, including the economy and education.

«An immediate priority is the completion of the tax reforms. We are gradually reducing up to 2009 the tax paid by households so that middle-income earners are taxed at a rate of 25 percent,» he said.

The government's economic record is seen as instrumental in helping the conservatives win the national elections, as the Greek economy has one of the strongest growth rates in the eurozone despite an anticipated slowdown after the Olympic Games.

Corporate tax cuts and a tighter fiscal policy have helped increase local and foreign investment activity.

Karamanlis reiterated the government goal of balancing the budget by 2010, as he also outlined the direction of the conservatives' policies during their first 100 days in office.

In order to help make the controversial reforms more palatable, the government intends to place particular emphasis on its social welfare policies.

Karamanlis also announced further changes to the electoral law.

«It is clear that we need an electoral law that will boost government stability, though not to the detriment of proportional representation,» Karamanlis said without giving any further details.

According to the current law, of the 300 seats in Parliament, 260 are divided up among the political parties and 40 seats are automatically awarded to the party that is first past the post.

New Democracy officials have said in the past that the party was examining a law change that would offer more than 40 seats as a bonus to the winning party.

In a procedure that follows every election showdown, ministers will continue addressing Parliament today and tomorrow in a debate that will culminate in a confidence vote at around midnight tomorrow.