PM admits defeat, as Socialists win Greek vote

The New Democracy Party of Greece's Prime Minister Costas Karamanlis has conceded defeat in the general elections, handing power to the opposition Socialist party.

With 87 percent of votes counted, the PanHellenic Socialist Movement (PASOK) party is leading with 44 percent of the ballot, compared with New Democracy's 34 percent, according to figures announced by the Interior Ministry late on Sunday.

The margin, which indicates a victory for PASOK, is the largest seen in a Greek vote in decades.

This could mean 160 seats for the Socialists in Greece's 300-seat Parliament, while the ruling party would receive only 93 seats, officials said, CNN reported.

PASOK's leader George Papandreou is set to become the next Greek Prime Minister promising to chart a new course for an economic comeback, while the country is on the brink of recession, a growing deficit and low budget revenues.

The 57-year-old political leader had promised a EUR 3 billion (USD 4.36 billion) stimulus package on a platform of raising taxes for the rich and easing them for the poor.

"On this course, nothing is going to be easy -- it will take work, hard work," Papandreou said in his victory address. "And I will always be honest with the Greek people so that we may better solve the problems of the state," CNN reported.

Premier Karamanlis, on the other hand, admitted defeat at the election center in central Athens and stepped down from his party's leadership.

"I want to congratulate George Papandreou for his victory," he was quoted by Reuters as saying. "Our government faced the storm of the most serious post-war crisis ... Citizens did not approve my plan."