Scandal-weary Greeks punish government in EU vote

ATHENS (Reuters) - Greek voters angry with scandals and the economic crisis spurned their conservative government in Sunday's European Parliament election, which is expected to bolster opposition Socialist calls for early national elections.

The vote, which handed victory to the Socialists according to partial results, will also further hamper government efforts to face the global crisis as it clings to a one-seat majority.

Eroding public support may force snap elections earlier than expected, analysts said. The government's term ends in 2011 but a vote for president in March is widely seen as the limit.

With about 45 percent of the vote counted, the socialist PASOK was ahead with 36 percent of the vote and the ruling New Democracy 33 percent, with the gap between the two expected to settle at about four percentage points.

"The people have spoken and our victory is great," said PASOK leader George Papandreou. "Greeks voted to demand a radical change in our country."

New Democracy swept to power in 2004 vowing to end decades of socialist corruption but was hit by a series of scandals, ranging from bribes for island ferry routes to overpriced bonds sold to state pension funds.

Although expecting to pay the price for graft and the crisis, it was hoping to trail PASOK by less than 3 percentage points.

Public spending cuts, tax hikes and reforms needed to cope with rising unemployment and a limping economy after years of 4 percent GDP growth, will now be more difficult to implement.

"These elections are making a wobbly government even more wobbly," political commentator George Papachristos told Mega TV.

While jubilant PASOK supporters drove through Athens honking car horns and waving party flags, the mood was more somber at New Democracy headquarters.

"The election result certainly does not please us," Prime Minister Costas Karamanlis said. "Many of our voters chose to send us a message, mainly by abstaining."

Struggling with a huge debt and eroding public finances, the government has little room to offer relief to the poor.

"I cast a blank ballot because I don't trust anyone, they've brought Greece to such a sad state," said pensioner Iordanis Sidiropoulos, 71. "We should all have abstained."

Voters showed their discontent not only with the government but with the whole political system but choosing smaller parties or abstaining - a record 45-50 percent of voters stayed away although voting is mandatory in Greece.

The Greek Communist Party was gathering about 8 percent of the vote, the far-right LAOS party 7 percent and the Left Coalition 5 percent.

(Additional reporting by Renee Maltezou; Editing by Diana Abdallah)