Election victory for Greek conservatives

“New Democracy won the elections,” Papandreou said. “We will help the effort for the Olympic Games … a very big moment for our country.”

Papandreou conceded the election after various exit polls – carried by private and state-run television – gave Costas Caramanlis’ New Democracy party a lead hovering around 5 percentage points ahead of the Socialists. All exit polls had a margin of error of plus or minus 1.5%t

Early returns also showed the Socialists headed for defeat.

The conservatives led by 47-year-old Caramanlis began celebrating on the strength of the figures.

Some leading Socialists acknowledged that the results looked bleak.

“The estimation so far is a clear defeat,” said Culture Minister Evangelos Venizelos, who is the government’s chief Olympic planner.

Former Interior Minister Costas Skandalidis said “it appears that New Democracy has won”.

If the exit polls are confirmed by the vote count, it would give the conservatives an overwhelming majority in the 300-seat parliament. Under the Greek system, the winning party takes the lion’s share of seats.

The elections put voters at a clear crossroads: Stick with the decade-old Socialist establishment or turn to the inexperienced conservatives.

Both parties expressed confidence of victory before polls closed at 7pm (17.00 Irish time).

The conservative New Democracy party had been consistently ahead in opinion polls with the Socialists widely perceived as rife with corruption, inefficiency and political arrogance after leading the country for all but three years since 1981.

The Socialists began to claw back last month by turning to their roots - handing the leadership over to popular former foreign minister, George Papandreou, the 51-year-old American-born son of the party’s charismatic founder.

A come-from-behind win for the Socialists – now appearing unlikely – would deepen the party’s dominance over Greek affairs and extend the political dynasty of the Papandreou family to a third generation.

For New Democracy – which governed from 1990-93 – the election is seen as a referendum on its relevance. Victory would signal the end of the Socialist grip and show important changes in Greek attitudes, which have been heavily influenced in favour of the left since the collapse of the 1964-74 military dictatorship.

“This is the day of the voters and we have absolute confidence in their judgment,” Caramanlis said after voting in the northern city of Thessaloniki.

But there was one certainty: The winner must immediately confront the huge challenges ahead to pull off a successful Olympics this summer.

Many projects for the August 13-29 Games remain seriously behind schedule, including a glass-and-steel roof planned for the main stadium. The government must also make sure the unprecedented 800 million dollar (£432m) security network keeps pace with possible threats. Joint US-Greek military exercises are scheduled to begin on Wednesday to train for possible terrorist attacks during the games, including hijackings and hostage taking.

Caramanlis has promised to keep key Olympic planning personnel if he takes over.

Caramanlis – who is also the scion of a well-known Greek political family - has promised smaller government, less bureaucracy and fewer taxes. He has also pledged more funds for social welfare, education and health.

New Democracy was founded in 1974 by his uncle and namesake, former premier and president Constantine Caramanlis.

Voting is compulsory in Greece, which has a population of 11 million people. There are nearly 10 million registered voters – a large number attributed to an ageing population and the many Greeks living abroad.

Parties need at least 3 percent of the vote to gain a seat in parliament. The Greek Communist Party is expected to clear the threshold. The Left Coalition is struggling to retain a place in the chamber.

But some exit polls also showed an ultra-nationalist and anti-immigrant party, Laos, with the possibility of reaching parliament.