Athens - Greeks began voting on Sunday to elect a new government in which the incumbent conservatives, which have come under fire for corruption, social discontent and its inability to tackle the economic crisis, are expected to lose to the opposition Socialists.

Greece's parliamentary elections will once again be a match between the heirs to two of the most powerful political dynasties in the southern Mediterranean country.

The families of main contenders, Conservative New Democracy party leader and Prime Minister Costas Karamanlis, 53, and main opposition Socialist PASOK leader, George Papandreou,
57, have dominated Greek politics since the 1950s.

PASOK is heavily favored to beat the conservatives in Sunday's vote by the nation's nearly 10 million voters.

The last opinion polls showed the Socialists to be ahead by more than 6 per cent, which could give them a slight majority in the 300-seat parliament.

Anything less could result in no party winning an outright majority, forcing new elections to be called, possibly in November.

Parties expected to pass the 3 per cent hurdle to enter parliament, include the Communist Party of Greece KKE, the Coalition of the Radical Left (SYRIZA) and the ultra-conservative People's Orthodox Alarm (LAOS).

Karamanlis called the snap election last month, halfway through his second-term, hoping to win a fresh mandate to tackle the economy.

But the popularity of the prime minister has been severely hard-hit in the wake of a series of financial scandals that embroiled his government in allegations of corruption leading to the worst riots the country has seen in decades following the shooting of a teenager in December.

Security concerns were amplified ahead of Sunday's vote after a small bomb exploded just minutes before the prime minister took to the stage in his final campaign speech on Friday.

The far-left group, Conspiracy Nuclei of Fire, claimed responsibility for the bombing and another against the Socialist government's spokeswoman on the economy on September 23. Police have since arrested four members of the group and are looking for at least six others.

The first exit polls are expected immediately after voting stations close at 1600 GMT. (dpa)