INSTANT VIEW: Socialists win Greek election

ATHENS (Reuters) - Greece's Socialists, who campaigned on a promise to inject a 3 billion euro ($4.36 billion) stimulus package into the economy, have won Sunday's national election with enough seats to form a government.

Following are comments from analysts.

MARKO MRSNIK, ANALYST, STANDARD & POOR'S

"Greece's sovereign credit ratings, while unaffected by the election outcome, will depend on post-election policy choices.

Against the background of repetitive budgetary slippages by consecutive governments, it remains to be seen whether the resolve to address the challenge will result in implementation of a credible budgetary strategy.

This would include an increased focus on primary expenditure discipline to put public finances on a sound footing as well as improve the prospects for the long-term sustainability of public finances, by addressing the budgetary impact of aging through structural reforms.

If the new government were to lay out a clear, credible, and sustainable agenda to reinvigorate those reforms, and if it demonstrates its effectiveness in implementing that agenda, this could eventually benefit the sovereign ratings."

ANTHONY LIVANIOS, POLITICAL ANALYST

"Voters gave a clear, strong mandate to (PASOK leader) George Papandreou, who will now have adequate power to fight the crisis. There is no if, there is no grey area.

New Democracy suffered its worst loss in its history for three reasons. Its economic program did not convince people, its political campaign was focused on right-wing voters in order to block leaks to LA.O.S, but LA.O.S increased its strength vis-a-vis New Democracy."

DIEGO ISCARO, IHS GLOBAL INSIGHT

"In order to pass the reforms the country needs to manage the economy in a more efficient way, it is positive that one party has got a majority in parliament.

I'm not quite sure how the markets will take PASOK's view on fiscal policies. That's the one question mark I have.

They were talking about injecting more money in the economy, which I'm not quite sure is a good idea (when) we are expecting fiscal deficits to be about 5 percent of GDP this year."

SERAPHIM SEFERIADES, ASSISTANT PROFESSOR OF POLITICAL SCIENCES AT THE PANTEION UNIVERSITY

"PASOK won't have a long period of grace. This percentage ... is more the consequence of New Democracy's collapse than a victory for PASOK. These voters won't forgive it if it doesn't respond immediately to the social and the economic problems the country faces and this could result to social tension."

THEODOROS KOULOUBIS, PROFESSOR OF INTERNATIONAL RELATIONS AT THE UNIVERSITY OF ATHENS

"If PASOK were to manage 151 to 155 seats, then it will govern.

With respect to foreign policy I don't expect any dramatic departure from existing policies because there is more or less a consensus between the two major parties regarding the Euro-Atlantic orientation of the country; vis-a-vis Turkey; vis-a-vis the issue of the name of FYROM (the former Yugoslav republic of Macedonia).

With respect to domestic policy, there I see two different philosophies but fundamentally, given the constraints both parties are facing if they were to govern, they cannot depart very much from a policy that would fall in the average of the European Union members.

The main concerns are of course the budget deficit, public debt, unemployment and ways and means to re-energize the economy.

We'll have to wait and see the people that Mr Papandreou will select for his cabinet."

PANAGIOTIS DIMITROPOULOS, TREASURER MILLENNIUM BANK-GREECE

"A parliamentary majority means we will have political stability ahead. If the final tally gives socialists 155 seats, that's a pretty decent majority.

The new government will have a mandate to go to Brussels and ask for more time to get Greece out of the excessive deficit procedure.

With a majority in parliament one uncertainty factor is out of the way. I expect the outcome to be on the positive side as regards bond spreads. How well received it will be remains to be seen."

NIKOS MAGGINAS, ECONOMIST AT GREECE'S NATIONAL BANK

"The main challenge for the new government will be to submit a credible budget and a realistic timetable for reducing fiscal imbalances.

If exit polls are confirmed, we have a strong absolute majority which satisfies the market.

The markets, with bond markets on top, had discounted an absolute majority, so we don't expect any particular movements in the bond markets."

TAKIS ZAMANIS, CHIEF TRADER BETA SECURITIES

"Exit polls show an absolute majority will most likely be achieved, this is something very positive for the stock exchange because it means there will be no period of political instability.

An absolute majority means ... that a new government, in cooperation with Brussels, will take the necessary measures to consolidate the economy.

I believe that the stock market will open up tomorrow if the exit polls are confirmed."

SEBASTIAN WANKE, ECONOMIST AT DEKABANK

"It is a good thing that it looks like there will be a clear, absolute majority in the Greek parliament. Clear political conditions are essential. I just hope that the new majority is sufficiently aware of the fact that public finances need to get under control and that the new government will take decisive steps to achieve that. Obviously, having 155 seats would serve that purpose much better than just 151 or 152."

ALEXANDER MORAITAKIS, PRESIDENT OF GREEK BROKERS ASSOCIATION SMEHA

"The election outcome will likely be well-received by markets. Not because they have a preference between the two parties but because a new government with a parliamentary majority will have a fresh mandate to pursue its program over a four-year term."

The previous government had a de facto time limit, it was certain to face elections in March.

The new government will negotiate better terms, more time, with the EU to bring down the deficit. I do not expect there will be an impact on yield spreads of Greek government bonds over core European benchmark bonds. Pretty much all European governments face similar problems."

COSTAS YFANTIS, PROFESSOR OF INTERNATIONAL AFFAIRS, UNIVERSITY OF ATHENS

"If PASOK has an absolute majority the government will be more secure and daring in taking measures that won't be pleasant and won't meet the expectations it has created."

(Reporting by Athens bureau; Editing by Ingrid Melander and Sonya Hepinstall)