Greece's opposition Socialists led in today's election with 42.5 per cent of the vote, enough to form a government and oust conservatives who angered voters for failing to tackle graft and the economy, an exit poll showed.
The socialist PASOK was on track to win an absolute majority in parliament at a time when the Mediterranean country, seen as the euro zone's weakest link, needs a strong government to deal with an economy on the verge of recession.
An exit poll showed PASOK gaining 155 out of 300 seats in parliament, and conservatives New Democracy trailing with 36.4 per cent of the vote and 99 seats.
A second exit poll for Greek television channels produced a similar result, showing PASOK winning with 41 to 44 per cent of the votes, gaining 151 to 159 seats.
Official vote counting started after polls closed at 7pm (local time).
PASOK leader George Papandreou promised a €3 billion stimulus package on a platform of taxing the rich and helping the poor, while the outgoing Prime Minister Costas Karamanlis called for two years of austerity.
"I am certain that together we can change Greece. We want it, we can do it and we will achieve it," Mr Papandreou said, smiling widely after casting his ballot in Athens.
It was the third face-off for Papandreou, 57, a U.S-born soft-spoken politician, and Karamanlis, 53, a powerful speaker who appeals to the average Greek, both the heirs to two of Greece's most powerful political dynasties.
Opinion polls had showed most Greeks appeared ready to end five years of conservative rule that started amid high hopes of ending endemic corruption but soon sunk amid its own scandals.
Weakened by scandals and a fragile parliamentary majority, Mr Karamanlis called the snap poll in September, gambling he had a better chance of winning now than later in his four-year term.
Mr Papandreou faces a budget deficit topping 6 per cent of GDP, rising unemployment and deep unhappiness with the education system, social security and immigration.
After years of robust growth, Greece's output, about 2.5 per cent of the euro zone's total economy, is set to slow to zero growth or even enter negative territory this year, with key drivers and job providers like tourism particularly hard-hit.
Economists question the wisdom of Mr Papandreou's spending plan, saying it may lead to more borrowing in a country which already has the euro zone's second biggest debt after Italy as a percentage of GDP.
Reuters