Kyriakos Mitsotakis sworn in as Greek Prime Minister

Introduction

Kyriakos Mitsotakis, leader of the centre-right New Democracy party, has been sworn in as the prime minister of Greece for a second term following a resounding election victory. Mitsotakis has outlined his plans to rebuild Greece’s credit rating, create jobs, raise wages, and boost state revenues. His party secured 158 seats in the 300-seat parliament, surpassing the leftist Syriza party, which governed Greece from2015-2019 during the country’s economic crisis.

Conservative Kyriakos Mitsotakis sworn in as Greece’s prime minister

Rebuilding the Credit Rating and Economic Reforms

Mitsotakis has committed to implement significant changes during his second term to address Greece’s pressing needs. One of his key priorities is to rebuild the country’s credit rating, which suffered greatly during the debt crisis. He aims to achieve this through a series of reforms focused on improving the business environment and the health of the banking sector. Moody’s, a prominent ratings agency, has viewed New Democracy’s victory as credit-positive, ensuring continuity in fiscal and economic policies.

Job Creation and Wage Increase

To stimulate economic growth and alleviate unemployment, Mitsotakis plans to prioritize job creation. He aims to boost revenue from Greece’s vital tourism industry, which plays a significant role in the country’s economy. Additionally, he seeks to raise wages to approach the European Union average, providing better standards of living for Greek citizens.

Debt Reduction and Financial Outlook

Moody’s Senior Vice President, Steffen Dyck, forecasts that Greece will experience one of the largest debt reductions globally. The general government debt burden is expected to decline to less than 150% of GDP by 2025, down from 171.3% at the end of 2022. This positive trajectory is anticipated to enhance Greece’s financial stability and restore investor confidence in the country’s economy.

Cabinet Appointments

Kostis Hatzidakis, Vice President of New Democracy and former labor and energy minister, is expected to be appointed as the finance minister. Hatzidakis oversaw the restructuring of Greece’s largest power utility during the previous government. Nikos Dendias, who served as foreign minister in the previous administration, is likely to be appointed as the defense minister. The foreign ministry portfolio is expected to be assigned to George Gerapetritis, a senior aide to Mitsotakis who previously held the positions of state minister and temporarily took over the transport ministry after a train crash.

Addressing Voter Concerns

While the COVID-19 pandemic and a recent rail crash exposed weaknesses in Greece’s health and public transport systems, voters have expressed greater concerns about soaring prices and economic hardships. Mitsotakis aims to address these concerns and implement measures to improve the affected sectors, ensuring better services and increased affordability for the Greek population.