The government of Greek Prime Minister Kyriakos Mitsotakis continues to face overlapping and serious crises, despite ongoing attempts by his ruling New Democracy party to highlight economic progress. The PM sought to revive sagging poll numbers with a €2 billion package of tax cuts and benefits announced during September’s Thessaloniki International Fair (TIF), however the plan, meant to ease cost-of-living pressures and boost youth and families, drew a lukewarm response. Polls now place the ruling ND near 25–30%—far below its 2023 victory margin. In parallel, many Greeks have dismissed the TIF pledges as token relief amid high prices and rents. Government rhetoric has hardened, with Mitsotakis railing against “fake news” and emphasising law-and-order and migration to consolidate conservatives.

Simultaneously, corruption probes and mismanagement scandals have put the ruling ND on the defensive. The European Public Prosecutor’s Office (EPPO) is investigating major fraud in EU-funded farm subsidies, while public anger over the 2023 Tempi train tragedy persists. These controversies highlight governance weaknesses and have strengthened the opposition’s attacks on ND’s “clientelist state.”

Economically, Greece’s macro-indicators remain solid, with GDP growth at 2.2–2.3%, public debt projected near 138% of GDP by 2026 (down from 180%+), and unemployment at below 9%, the lowest in a decade. The country has regained investment-grade status after 13 years, marking a strong economic policy result. Yet, 3%+ inflation and soaring housing costs continue to erode living standards. New tax arrears jumped €3 billion in early 2025, underscoring the gap between macroeconomic success and household hardship—a key political risk for the government.

ND’s parliamentary majority ensures short-term stability, however ongoing scandals, inflation and infrastructure strains are eroding its authority. Mitsotakis rejects early elections, yet as Greece heads into the 2026 pre-election year and a constitutional review process, pressure will intensify. Greece’s fundamentals remain sound, but public patience is thinning and the margin for error is narrowing.