( CNN ) -- Greek voters will go to the polls to elect a new government two years early , Prime Minister Kostas Karamanlis announced Thursday . Prime Minister Kostas Karamanlis says he wants to enact reforms in response to the international financial crisis . He called the early elections in response to pressure from the opposition Socialist Party , which threatened to block the election of a president in February if there was no general election first . Karamanlis is also seeking a mandate from the voters for reforms in response to the international financial crisis , he said . `` It 's up to the citizens to decide who has the right plan to govern and face the economic challenges , '' he said in a speech to the country . `` We have two very difficult and critical years ahead of us , '' he said in the speech on Wednesday . `` There is only one path that offers hope and potential : We take -- without delay , without procrastination -- take all necessary measures to address these problems . By design and desire . We need to build the solid foundation that will ultimately get us out of this crisis stronger . '' He said the country needs `` stringent control on public spending , '' `` war on tax-evasion '' and `` bold structural reforms . '' The new elections will be held October 4 , Karamanlis announced Thursday after meeting President Karolos Papoulias , who officially dissolves parliament . Karamanlis ' term was not due to expire until September 2011 . But Socialist party leader George Papandreou insisted on new elections before the end of Papoulias ' term as president in February . The Greek constitution requires the two major parties to agree on the election of a president , giving either party an effective veto . Karamanlis called Papandreou 's stance `` blackmail . '' Parliament will be dissolved on September 7 , Karamanlis said on his Web site . Karamanlis ' conservative New Democracy party suffered a sharp setback in European elections in June , when the Socialists matched New Democracy 's tally of eight seats , with 36 percent of the vote . That election was seen as a litmus test for Karamanlis at a time of political and economic uncertainty with the economy shrinking and the country staring at a recession after nearly 15 years of high-profile growth . CNN 's Efty Katsareas and Christine Theodorou contributed to this report .
Prime Minister Kostas George announced elections Thursday . called early elections in response to pressure from opposition Democratic Party . PM called for ` ` stringent control on public spending ... war on tax - evasion ''