Kyriakos Mitsotakis, newly re-elected as Greece’s Prime Minister, has pledged to institute sweeping economic reforms aimed at job creation, increased wages, state revenue enhancement, and overall credit rating improvement.
Mitsotakis’s center-right party, New Democracy, secured an impressive victory in Sunday’s repeat elections, capturing 158 out of the 300 parliamentary seats. This strong win put them significantly ahead of the leftist Syriza party, which held power during Greece’s severe economic downturn from 2015-2019, and managed only 48 seats this time around.
During his official government formation mandate acceptance speech, Mitsotakis reassured President Katerina Sakellaropoulou of his commitment to implementing “the major changes that the country so urgently requires.”
At 55, Mitsotakis, a former banker and member of a prominent political dynasty, had previously held the office of Prime Minister from 2019 until an inconclusive May 21 vote prompted him to step down in favor of a temporary leader.
Among his key promises for this new term are credit rating restoration after the debt crisis, bolstering the all-important tourism sector, and raising wages to approximate the European Union average.
Senior Vice President of Moody’s, Steffen Dyck, echoed this positive outlook, suggesting that the continuity provided by New Democracy’s victory is beneficial to Greece’s credit standing. He specifically mentioned the emphasis on enhancing the business environment and maintaining the health of the banking sector.
Dyck predicts that Greece will register “one of the largest debt reductions globally”, expecting the national debt burden to shrink from 171.3% at the end of 2022, to below 150% of GDP by 2025.
Mitsotakis is expected to reveal his cabinet soon, and sources indicate Kostis Hatzidakis, the Vice President of New Democracy and previous labour and energy minister, will be appointed as the finance minister. Other expected appointments include Nikos Dendias as defence minister, and George Gerapetritis, a close Mitsotakis aide, as foreign minister.
