ATHENS (Thomson Financial) - Greek conservative party New Democracy is expected to retain power in parliamentary elections and is expected to win 153 out of the 300 legislative seats, sources close to the matter told Thomson Financial News.
The sources said there would be a challenge to the leadership of the main opposition socialist party, Pasok, led by Giorgos Papandreou, who appears to have lost the election, which comes after last month's devastating fires that killed more than 60 people.
Under new electoral laws, for a party to form government, it must win more than 150 parliamentary seats if there are more than five parties in parliament. Greece does not have an upper house.
Several brokers have told Thomson Financial News the market would prefer a New Democracy win because the party has promised to continue fiscal reform, restructure state-controlled enterprises and further privatizations. tf.TFN-Europe_newsdesk@thomson.com wj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.