In a major test of support for austerity measures, voters in crisis-hit Greece will vote in local elections today that could force the Socialist government to call a snap general election.

The vote pits Prime Minister George Papandreou’s 13-month-old Socialist government against an array of Opposition parties upset by the terms of a rescue loan from the European Union and the International Monetary Fund.

On Friday, Papandreou repeated a pledge to call an early election if his government loses significant support – spooking bond markets over Greece’s ability to cope with its massive debts.

“Several months ago, we saved Greece from bankruptcy, but the state of alert is not over,” Papandreou told an election rally.

“I have no wish to go to the nation,” he said. “But for this massive effort by the country to succeed we must have public unity and dedication when faced with this great challenge.”

The Greek government has endured waves of strikes and disruptive protests against the cost-cutting reforms demanded to start receiving the €110 billion in international emergency loans. Papandreou’s popularity has slipped in recent months, hurt by the ongoing recession and a surge in unemployment and small business failures.

Pressure for deeper cuts is likely to increase when, later this month, the EU revises Greece’s 2009 budget deficit to 15 per cent of gross domestic product, or even higher, from the current projection of 13.6 per cent.

The Socialists still appear unlikely to suffer a heavy defeat today, as opinion polls predict a roughly even split with main Opposition conservatives in 13 regional governor races.

On Friday, Conservative leader Antonis Samaras urged the government to “change course” and replace austerity with a policy of state investment to stimulate the economy.

“The prime minister should visit ordinary people and realise how much they are suffering,” he said in his final campaign appearance.

Gauging the results of today’s elections and run-offs on 14 November will be obscured by local party alliances and rebel candidacies likely to cost the Socialists a victory in greater Athens.

The political uncertainty has sent market borrowing costs sharply higher, with the interest-rate gap between Greek 10-year bonds and Germany’s benchmark equivalent exceeding nine percentage points on Friday. Today’s elections will be the first held following far-reaching changes in Greek local government that reduced the number of administrative regions from 54 to 13 and municipalities from 1,014 to 325 and will extend the terms of mayors and regional governors from four to five years.

State-run and private broadcasters in Greece are not doing exit polls for this year’s election, citing budget cuts. (AP)