Greece to hold early parliamentary elections

Prime Minister Costas Karamanlis called the election even though several senior members of his cabinet had publicly opposed the move.

The Conservatives, stung by a string of financial scandals, are trailing the opposition Socialists in polls. Their popularity sank further after recent destructive wildfires outside Athens.

Two surveys published last weekend gave the Socialists a six-point lead.

"I am seeking a renewed popular mandate to take the reforms necessary for the economy. ... If we do not act immediately, the dangers will be great," Karamanlis said. "2010 will be a difficult year for the economy."

Greece, which has seen a sharp rise in unemployment and rapidly slowing growth this year, is expected to declare its economy in recession next month.

Karamanlis, 52, has a majority of just one seat in the 300-member Parliament and is midway through his second term in office. He had not been scheduled to face an election until 2011.