M. Continuo

Greek opposition widens poll lead over ruling left

ATHENS (Reuters) - Greece's conservative opposition New Democracy party has widened its opinion poll lead over the ruling Socialists, who are struggling to muster popular support for new austerity measures, a new survey indicated on Saturday.

The fall in support for Prime Minister George Papandreou's PASOK party could complicate his push to implement a new five-year package of austerity steps negotiated with its international lenders last month.

Assuming elections were held at once, the poll gave New Democracy 31 percent against 27 percent for PASOK, which was down five points in a month.

It indicated that New Democracy leader Antonis Samaras had drawn level with Papandreou in personal popularity for the first time since the election in 2009. Each had the support of 23 percent, with 55 percent preferring neither. In May, Papandreou led Samaras by 33 percent to 22.

"Support for the ruling PASOK party and the prime minister is falling, and is leading to a rapid change in the political scene," Yiannis Mavris, head of the polling agency Public Issue, wrote in an analysis for the newspaper Kathimerini.

PASOK's support has declined steadily since Papandreou's government accepted a 110 billion euro bailout from the European Union and International Monetary Fund last year and embarked on a belt-tightening campaign to save Greece from default.

Protesters take to the streets almost daily, a trend that increased this month after the government announced new austerity measures for 2011 after an upward revision of last year's budget deficit, and weaker-than-forecast revenues for this year, caused it to miss its fiscal targets.

Unions plan a nationwide strike for Wednesday.

DIFFICULT CONSENSUS

Worth some 6.5 billion for 2011 alone, the new package almost doubles the scope of the belt-tightening measures already agreed for this year.

Through 2015, the measures are intended to save a total of 28 billion euros. They envisage cutting 150,000 of Greece's 700,000 public-sector jobs, raising 50 billion euros by selling off state-owned companies, and increasing taxes on luxury goods and restaurant bills.

The EU and the IMF have asked that all Greek parties support the new measures ahead of a June 23-24 EU summit.

At the meeting, EU leaders are due to discuss a new aid package to replace the current bailout deal on the assumption that Athens will not be able to borrow on international markets this year or next.

They have yet to agree how this should be done, and are at loggerheads over a German demand that private creditors contribute to the cost. Some euro zone governments, the European Central Bank and ratings agencies believe this would trigger a Greek credit default and turmoil on financial markets.

In an interview with the weekly To Vima, Papandreou repeated a call for consensus and said political forces needed to send a message that they understood the challenges facing Greece.

He said he was confident that he would be able to lead Greece through the crisis.

"In war you make mistakes, you are wounded, you bleed, you lose battles. But what matters is to win the war, to save and change the country. And we will win this war," he said.

The Socialists have 156 deputies in the 300-seat house, and Finance Minister George Papaconstantinou said on Friday he hoped parliament could approve the mid-term plan by the end of June.

But Papandreou is fighting not only opposition parties and daily grassroots protests outside of parliament, but also members of his own party who have expressed unease at the plan.

According to the poll, willingness by Greeks to participate in demonstrations has risen from more than 12 percent in May to 25 percent in June.

(Reporting by Lefteris Papadimas; writing by Michael Winfrey; Editing by Kevin Liffey)

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