Greeks vote in critical election
A gust of wind lifts the kilt-like uniform of a Greek presidential guard during the changing of the guard ceremony outside the Greek parliament, central Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after the May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Giannakouris)
Greek presidential guards perform during the changing of the guards ceremony outside the Greek parliament in central Athens, on Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Giannakouris)
A boy plays with pigeons in front of the Parliament in central Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
Greeks gather in Omonia square to celebrate the country's win against Russia in the Euro 2012 soccer tournament in central Athens, late Saturday, June 16, 2012. (AP Photo/Petros Karadjias)
A man begging for alms lays by a sticker with Greece' national football team players one day before general elections in Athens, on Saturday, June 16 2012. Greeks vote for the second time in six weeks Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Kostas Tsironis)
Supporters of Conservative "New Democracy" party chat inside an election kiosk one day before general elections in Athens, Saturday, June 16, 2012. Greeks vote for the second time in six weeks Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Kostas Tsironis)
A man looks at the front pages of newspapers the day before general elections in Thessaloniki, Greece, Saturday, June 16, 2012. Greeks vote for the second time in six weeks Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Dimitri Messinis)
People enjoy the sun and the sea a day before the elections in Faliro, a coastal suburb of Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
Greeks drive a car on a street to celebrate the country's win against Russia in the Euro 2012 soccer tournament in central Athens, late Saturday, June 16, 2012. (AP Photo/Petros Karadjias)
A pedestrian checks lists with polling stations one day before general elections in Athens, Saturday, June 16, 2012. Greeks vote for the second time in six weeks this Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Kostas Tsironis)
A woman with her child beg in front of a closed branch of Eurobank one day before general elections in Thessaloniki, Saturday, June 16, 2012. Greeks vote for the second time in six weeks Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Dimitri Messinis)
A woman casts her shadow on a wall as she walks by a poster of leftist party (ANTARSIA) one day before general elections in Athens, Saturday, June 16, 2012. The poster reads " Bread Education Freedom - Down with the memorandum - Cancel the debt" . Greeks vote for the second time in six weeks Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Kostas Tsironis)
A homeless man queues to receive food aid handed out from the municipality in Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
A homeless man sleeps on the ground as a woman passes by in central Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
People wait in a line to receive food from municipality of Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
Greeks gather at Omonia square to celebrate the country's win against Russia in the Euro 2012 soccer tournament in central Athens, late Saturday, June 16, 2012. (AP Photo/Petros Karadjias)
An elderly man eat his food that he received from municipality of Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
A Greek man wearing a replica of an ancient warrior's helmet drives a motorcycles around Omonia Square to celebrate the country's win against Russia in the Euro 2012 soccer tournament in central Athens, late Saturday, June 16, 2012. (AP Photo/Petros Karadjias)
A homeless man sleeps on the ground as people pass by in central Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
An Athens municipality employee, right, gives a piece of bread to a homeless man in Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
Men sit in the sun a day before pivotal elections in Faliro, a coastal suburb of Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
A woman waits inside a polling station in Athens, Sunday, June 17, 2012. Greeks voted Sunday for the second time in six weeks in what was arguably their country's most critical election in 40 years, with the country's treasured place within the European Union's joint currency in the balance. (AP Photo/Kostas Tsironis)
A woman arranges ballot papers at a polling station in Athens, on Sunday, June 17 2012. Greeks voted Sunday for the second time in six weeks in what was arguably their country's most critical election in 40-years, with the country's treasured place within the European Union's joint currency in the balance. (AP Photo/Kostas Tsironis)
Voters queue to vote at a polling station in Athens, Sunday, June 17, 2012. Greeks voted Sunday for the second time in six weeks in what was arguably their country's most critical election in 40 years, with the country's treasured place within the European Union's joint currency in the balance. (AP Photo/Kostas Tsironis)
Head of Greece's radical left-wing Syriza party Alexis Tsipras casts his ballot at a voting center in Athens, Sunday, June 17, 2012. Greeks voted Sunday for the second time in six weeks in what was arguably their country's most critical election in 40 years, with the country's treasured place within the European Union's joint currency in the balance. (AP Photo/Petros Karadjias)
Head of Greece's radical left-wing Syriza party Alexis Tsipras casts his ballots at a voting center in Athens, Sunday, June 17, 2012. Greeks vote Sunday for the second time in six weeks in what may be their country's most critical election in 40-years. The sign reads : Parliamentary elections 2012. (AP Photo/Petros Karadjias)
A Greek woman carries a child as she leaves the booth after voting during the elections in Athens, Sunday, June 17, 2012. The sign reads in Greek Parliamentary elections 2012.(AP Photo/Petros Karadjias)
A child looks on from a polling booth as her father prepare to vote at a polling station in Athens, Sunday, June 17, 2012. Greeks are voting Sunday for the second time in six weeks in what is arguably their country's most critical election in 40 years. (AP Photo/Petros Giannakouris)
A Greek woman leaves the booth after voting during the parliamentary elections in Athens, Sunday, June 17, 2012. The sign reads in Greek Parliamentary elections 2012. The signs reads: Parliamentary elections 2012. (AP Photo/Petros Karadjias)
Leader of the Greek Communist party Aleka Papariga casts her ballot at a polling station in Athens, Sunday, June 17, 2012. Greeks are voting Sunday for the second time in six weeks in what is arguably their country's most critical election in 40 years. (AP Photo/Petros Giannakouris)
Leader of the Democratic Left party Fotis Kouvelis casts his ballot at a polling station in Athens, Sunday, June 17, 2012. Greeks are voting Sunday for the second time in six weeks in what is arguably their country's most critical election in 40 years. (AP Photo/Petros Giannakouris)
A man exits a booth before casting his ballot at a polling station in Athens, Sunday, June 17, 2012. Greeks are voting Sunday for the second time in six weeks in what is arguably their country's most critical election in 40 years. (AP Photo/Petros Giannakouris)
A Greek man checks the voting lists at a center voting during the elections in Athens, Sunday, June 17, 2012. Greeks voted Sunday for the second time in six weeks in what was arguably their country's most critical election in 40 years, with the country's treasured place within the European Union's joint currency in the balance. (AP Photo/Petros Karadjias)
Tourists watch two presidential guards perform outside the Greek parliament in central Athens, on Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed.(AP Photo/Petros Giannakouris)
Men sit in the sun a day before pivotal elections in Faliro, a coastal suburb of Athens, Saturday, June 16, 2012. Greeks cast their ballots this Sunday for the second time in six weeks, after May 6 elections left no party with enough seats in Parliament to form a government and coalition talks collapsed. (AP Photo/Petros Karadjias)
A man begging for alms lays by a sticker with Greece' national football team players one day before general elections in Athens, on Saturday, June 16 2012. Greeks vote for the second time in six weeks Sunday amid fears that the country could be forced out of the euro if they reject the strict austerity measures taken in return for billions of euros in rescue loans from other European countries and the International Monetary Fund. (AP Photo/Kostas Tsironis)
ATHENS, Greece — The conservative party that backs keeping Greece in the eurozone won the country’s national election Sunday and immediately proposed forming a pro-euro coalition government — a development that eased, at least briefly, deep fears that the vote would unleash an economic tsunami.
As central banks stood ready to intervene in case of financial turmoil, Greece held its second national election in six weeks after an inconclusive ballot on May 6. The vote was seen as crucial since it could determine whether Greece would leave the joint euro currency, a move that would have potentially catastrophic consequences for other ailing European nations, the United States and the entire global economy.
With 66 percent of the vote counted, official results showed the conservative New Democracy winning 30.1 percent of the vote and 130 of the 300 seats in Parliament. The radical anti-bailout Syriza party had 26.5 percent and 70 seats and the pro-bailout Socialist PASOK party came in third with
12.6 percent of the vote and 34 seats.
The parties have starkly different views about what to do about the (euro) 240 billion ($300 billion) in bailout loans that Greece has been given by international lenders, and the harsh austerity measures that previous Greek governments had to accept to get the funds.
“The Greek people today voted for Greece to remain on its European path and in the eurozone,” New Democracy leader Antonis Samaras said. “(Voters chose) policies that will bring jobs, growth, justice and security.”
Syriza chief Alexis Tsipras, who had tapped into a vein of deep anger over the plunging living standards faced by many Greeks, had wanted to rip up Greece’s international bailout deals and roll back the new taxes, job cuts and pension cuts imposed in the last two years.
That plan will have to wait, since the party that comes in first — New Democracy — gets the first stab at forming a new majority in Parliament. If they fail, the next highest party gets to try.
Tsipras congratulated Samaras and conceded the election.
The head of Greece’s socialist
PASOK party, meanwhile, proposed that a unity government be formed of four top parties, including Syriza despite its anti-bailout views.
PASOK’s Evangelos Venizelos, who spent months negotiating bailouts as Greece’s finance minister, suggested dumping the usual procedure of each party seeking coalition partners. He said a government must be formed quickly and suggested one between New Democracy, Syriza, PASOK and the small Democratic Left.
“There is not one day to lose. There is no room for party games. If we want Greece to really remain in the euro and get out of the crisis to the benefit of every Greek government, it must have a government tomorrow,” Venizelos said after results were announced.
Greece has been dependent on rescue loans since May 2010, after it was locked out of the international markets following years of profligate spending and falsifying financial data. The spending cuts made in return for the bailout loans have left the country mired in a fifth year of recession, with unemployment spiraling to above 22 percent and tens of thousands of businesses shutting down.
The austerity measures have included deep spending cuts on everything from health care to education and infrastructure, as well as tax hikes and reductions of salaries and pensions.
Virtually unknown outside of Greece four months ago, Tsipras and his party shot to prominence in the May 6 vote, where he came in surprise second. But his pledges, which included canceling planned privatizations, nationalizing banks and rolling back cuts to minimum wages and pensions, horrified European leaders as well as many Greeks.
Experts said his proposals would lead to Greece getting tossed out of the eurozone and immediate, severe economic hardship for locals for years.
Samaras, meanwhile, cast Sunday’s choice as one between the euro and returning to the country’s old currency, the drachma. He has vowed to renegotiate some of the bailout’s harsher terms but insists the top priority is for the country to remain in Europe’s joint currency.
“Today the Greek people speak. Tomorrow a new era for Greece begins,” Samaras said after voting in southern Greece.
The vote went smoothly except for one incident in which 10 men armed with sledgehammers and wooden bats attacked a polling station in central Athens, wounding two policemen and setting fire to the ballot box. The attack took place in the Athens neighborhood of Exarhia, a traditional haven for anarchists.
Greek police were also investigating the discovery Sunday of two unexploded hand grenades outside private Skai television station on the outskirts of Athens.