Greek government in crisis after EU subsidy scandal

Greek Prime Minister Kyriakos Mitsotakis was unusually contrite at the weekend. "We failed," he wrote on Facebook, promising to step up the fight against corruption — even within his own party, New Democracy (ND).

Mitsotakis was responding to the latest scandal concerning the misuse of EU subsidies in Greece, which is currently being investigated by the European Public Prosecutor's Office (EPPO).

The scandal revolves around several hundred million euros in agricultural subsidies, which were paid out to applicants by the Greek government agency OPEKEPE.

Examples include subsidies for non-existent sheep and goats on the island of Crete or banana plantations on Mount Olympus.

Ministers allegedly involved

It is alleged that this happened with the knowledge of two former agriculture ministers in Mitsotakis's government: Makis Voridis, who was in office from 2021 to 2023, and his successor, Lefteris Avgenakis, who held the post until 2024.

Makis Voridis was agriculture minister before becoming Greek migration ministerImage: Giannis Panagopoulos/ANE/picture alliance

Voridis, who also enjoys a good reputation as a legal expert, was made migration minister in March of this year. He resigned on Friday, saying he wished to focus on "defending his innocence."

Three other state ministers implicated in the scandal have also submitted their resignations. 

Not a new scandal

But this is not a new scandal; the allegations relating to OPEKEPE surfaced several months ago, and on June 17, the European Commission imposed a fine worth €415 million ($486 million) on Greece.

The EPPO lodged an official complaint in May and accused the Greek authorities on Crete of having tried to obstruct investigations.

But the Greek government did not respond to the accusations and took no action — until last week, when the EPPO sent information to the Greek parliament about the alleged involvement of ministers in criminal activities.

It did so because according to Greek law, only parliament has the authority to investigate current or former members of the Greek government. 

A 'criminal organization'

This means that for the past week, Greek lawmakers have been able to study the 3,000-page file submitted by the EPPO, which may not, however, be published.

It describes a "criminal organization" comprising OPEKEPE officials, lawmakers and individuals who illegally obtained EU money.

Olives are one of Greece's most important agricultural commoditiesImage: Sofia Kleftaki/DW

The file names 15 lawmakers — 13 from the ruling ND party and one each from the opposition parties PASOK and Syriza — as well as regional civil servants and former OPEKEPE executives.

It also describes how the organization worked — above all in Crete.

Explosive conversations

Despite the ban on publication, Greeks have been able to read in newspapers in recent days some explosive conversations between officials from the ruling party that were contained in this file.

Some of the transcripts read like mafia film scripts. 

They include discussions between high-ranking civil servants about how they could, with the help of the justice minister, keep EPPO staff members out of the investigation. 

Until the publication ban is lifted, the authenticity of these conversations cannot be proven. Mitsotakis, however, does not seem to question their authenticity.

"The dialogues that have been uncovered are causing outrage and anger," he wrote in his Facebook post, adding that everyone who is proven to have received EU money to which he or she is not entitled, will be required to pay it back.

He also announced that OPEKEPE would be abolished by the end of the year.

Mitsotakis under pressure

The Greek prime minister is trying to portray himself as a reformer and fighter in the battle against corruption and incompetence in the Greek political system. Whether the Greek public will buy it, remains to be seen.

Agriculture is a pillar of the Greek economy. Many migrants find work as harvest workersImage: Michael Anhaeuser/dpa/picture alliance

His time in office has been overshadowed by numerous scandals, including the wiretap scandal, the deadly refugee ship tragedy off the coast of Pylos and, above all, the Tempi railway disaster.

Each time, he has pledged to get to the bottom of the scandals and that there would be consequences for those involved. None of this has happened.

This explains why over 70% of respondents in every survey conducted since the beginning of the year accuse the government of a cover-up. 

In addition, it is Europe — in the form of the European Parliament and the EPPO —  and not the Greek authorities themselves that is pushing for the resolution of the wiretap scandal, the train tragedy and now the OPEKEPE scandal.  

Even tougher stance on migration?

One thing is certain: Mitsotakis faces yet another crisis and is trying to move past it as quickly as possible, among other things with a political message to an increasingly conservative public and the right wing of his party, which is not always happy with his policies.

Mitsotakis appointed Thanos Plevris migration minister at the weekend. 

Thanos Plevris, a former member of the ultra-nationalist LAOS party, is Greece's new migration ministerImage: Petros Giannakouris/AP/dpa/picture alliance

Plevris, like Voridis before him, used to be a member of the extreme right-wing Popular Orthodox Rally (LAOS). He is the only member of the conservative ND party who advocates for an even tougher stance on migration than his predecessor. 

Plevris has since 2011 had a very clear idea of how to resolve Greece's migration problem, namely by strict surveillance of the borders and deterrent measures that make the country look like "hell" to immigrants.

Speaking at a conference of the extreme right-wing magazine Patria at the time, he said that there is no border security without victims, adding that "Border protection needs deaths."

And for those who did make it across the Greek border, he had another suggestion: They should get no social security, no food, no drink and no access to the health system. "They have to have it even worse than in their own countries," he said, to the applause of those listening.

That was almost 15 years ago, but Plevris has never distanced himself from his xenophobic past. 

This article was originally published in German.