ATHENS, Greece (AP) -- Both Greece's main parties agree the economy is in a mess, hobbled by a public debt and budget deficit that are among the highest in the euro zone. But ahead of national elections Sunday, they offer wildly contrasting remedies -- spending versus austerity. Socialist opposition leader George Papandreou, the likely winner, wants to inject up to €3 billion ($4.39 billion) to stimulate the economy, give public sector workers above-inflation pay rises and boost infrastructure investment. Conservative Prime Minister Costas Karamanlis is seeking a renewed mandate to pass urgent but unpopular reforms. He has pledged to freeze salaries, pensions and hirings, cut spending and take severe action against widespread tax evasion.
ATHENS, Greece (AP) -- Both Greece's main parties agree the economy is in a mess, hobbled by a public debt and budget deficit that are among the highest in the euro zone. But ahead of national elections Sunday, they offer wildly contrasting remedies -- spending versus austerity.
Socialist opposition leader George Papandreou, the likely winner, wants to inject up to €3 billion ($4.39 billion) to stimulate the economy, give public sector workers above-inflation pay rises and boost infrastructure investment.
Conservative Prime Minister Costas Karamanlis is seeking a renewed mandate to pass urgent but unpopular reforms. He has pledged to freeze salaries, pensions and hirings, cut spending and take severe action against widespread tax evasion.
Greek Prime Minister Costas Karamanlis on Tuesday promised tough economic measures to deal with Greece's ballooning debt, saying he was confident voters would opt for his difficult path in Oct. 4 elections. Karamanlis, whose New Democracy party has been trailing the opposition socialists in opinion polls, told Reuters in an interview he will speed up reforms and promote transparency if re-elected for a third term on Sunday. "Greece is at a crucial crossroads," he said. "At this moment the country needs a responsible, steady and clear policy. We face serious problems." Karamanlis called snap polls halfway through his second term, asking for a fresh mandate to deal with the economic crisis hitting the euro zone's weakest link. The last polls published showed him trailing by about 6 percentage points. He said he was confident he could beat the odds by rallying New Democracy supporters, whom pollsters see as ambivalent just days before the vote, but ruled out cooperating with the far-right to achieve a governing majority.
