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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Best of the week Our top pictures from the past week. Full Article Read Wall St reform architect Frank fights for survival 28 Oct 2010 UPDATE 4-Argentina enters new political era as Kirchner dies 28 Oct 2010 French protest again on pensions but fatigue weighs 28 Oct 2010 U.S. ends inquiry on Google's Street View cars 27 Oct 2010 Tea Party-backed Republicans spur party switches 28 Oct 2010 Discussed 258 Wall St reform architect Frank fights for survival 94 Republicans poised to win House and gain in Senate 57 U.S. slips to historic low in global corruption index Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Russian spy poses for Maxim Tue, Oct 19 2010 Mexico's 20-yr old police chief Thu, Oct 21 2010 Greek PM gives new hint he may call election Tweet This Share on LinkedIn Share on Facebook By George Georgiopoulos ATHENS (Reuters) - Greek Prime Minister George Papandreou gave a fresh hint Saturday that he may call a new general election if his party fares poorly at municipal polls next week, a prospect that has sent jitters through... Related News Greek retail sales slump, add to budget, stats worries Fri, Oct 29 2010 UPDATE 3-Deficit that sparked Greek crisis tops 15 pct-finmin Wed, Oct 27 2010 UPDATE 1-No room left to raise Greek tax rates -central bank Tue, Oct 26 2010 Greece to meet deficit goal, no need for loan extension Sat, Oct 23 2010 UPDATE 2-Greece did not ask for IMF loan extension -govt spox Wed, Oct 13 2010 Analysis & Opinion China runs circles round adversaries Related Topics World » Greek Prime Minister George Papandreou answers questions as he arrives at a meeting of the European Socialists PES, ahead of a European Union leaders summit, in Brussels October 28, 2010. Credit: Reuters/Thierry Roge By George Georgiopoulos ATHENS | Sat Oct 30, 2010 4:11pm EDT ATHENS (Reuters) - Greek Prime Minister George Papandreou gave a fresh hint Saturday that he may call a new general election if his party fares poorly at municipal polls next week, a prospect that has sent jitters through markets. With opinion polls showing his socialist party's popularity declining before the municipal elections on November 7, Papandreou has been urging Greeks to support his government's efforts to tackle a crisis that has shaken the euro. "If our course so far starts to be doubted, if we show that we are losing resolve in the middle of the road and are being led to destabilization, confidence in the country will be lost," Papandreou told Sunday's RealNews paper in an interview. "In such an eventuality, there will be no other solution than for the Greek people to speak, to condemn policies of destabilization and decide on the country's future course," he said. The remarks will be seen as a fresh hint that he is prepared to call a general election, a prospect he first suggested in an interview with seven TV stations on October 25. Financial markets are worried that a new general election could hurt efforts to resolve the crisis. Yield spreads on Greek government bonds widened over benchmark German bunds beyond 800 basis points after the October 25 interview. Papandreou has not said precisely what results in the municipal election would prod him to call for a new general election, but he said the threat is not idle. "I am not bluffing. The crisis we are facing is not a bluff. I noted an existing risk for the country if we subscribe to the (political opposition) New Democracy, the danger of turning back, seeing our sacrifices going to waste," Papandreou said. Euro zone countries and the International Monetary Fund (IMF) have bailed Greece out with 110 billion euros in exchange for strict fiscal measures and reforms as agreed in a memorandum. Meeting these targets is key for continued funding. In his 12 months in office, Papandreou has imposed harsh deficit-cutting measures, including public sector wage and pension cuts and higher taxes amidst Greece's deepest recession in decades. Although his party still leads in opinion polls, belt-tightening and rising unemployment may inflict damage in the upcoming local polls, when Greeks elect mayors and local governors. In another interview with Sunday's Eleftherotypia newspaper, Finance Minister George Papaconstantinou said stable political support was key to continuing the task of leading the over-borrowed country out of its fiscal crisis. "It is not our intention to go to early elections. The prime minister's message was clear: the outcome of (municipal) elections will be taken into account to see whether the government can continue its course to save the country with the support of the people," he said. The opposition conservatives, who voted against the bailout memorandum Greece signed with the EU and the IMF, have been calling for changes in the policy mix to help the economy recover from a downward spiral. Papandreou also told the paper that despite an expected upward revision of last year's deficit by EU statistics office Eurostat, the government would meet key fiscal targets without new measures that would burden wage earners and pensioners. 1 2 Next World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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