Kyriakos Mitsotakis has emerged as the clear winner in Greece’s general election, marking the country’s second vote within just over a month. Mitsotakis, the leader of the center-right New Democracy party and former prime minister, achieved a landslide victory, securing a comfortable majority in parliament. With 87% of the votes counted, New Democracy garnered 40.5%, enabling Mitsotakis to form a single-party government with 158 members in the 300-seat chamber. In contrast, the leftist Syriza party of ex-Premier Alexis Tsipras experienced a decline, receiving 17.8% of the vote.
Mitsotakis’ victory has sparked a positive response from the markets, with investors rallying behind the prospect of another four-year term for the leader. Throughout his campaign, Mitsotakis placed significant emphasis on his economic stewardship, leveraging Greece’s robust recovery as a central pillar of his platform. The Athens Stock Exchange General Index has surged by over 36.4% this year, and the yield on Greek 10-year bonds stands at around 3.6%, the lowest in approximately 10 months.
Voters were swayed by Mitsotakis’ promise to build upon one of the European Union’s fastest economic recoveries, which has positioned Greece’s debt on the verge of an investment-grade rating. Notably, concerns surrounding the handling of a train crash and a spying scandal involving the prime minister’s intelligence agency did not materialize as significant factors in the election outcome.
Addressing his supporters, Mitsotakis expressed gratitude for the secure majority bestowed upon his party. He pledged to pursue major reforms with swiftness and determination. The new parliament will consist of eight parties, including three far-right groups. The Spartans, a nationalist party supported by a leading figure from the nationalist Golden Dawn party, who is currently incarcerated, secured 4.7% of the vote. However, the voter turnout was slightly above 52%, marking one of the lowest participation rates in decades.
Mitsotakis is expected to be sworn in as prime minister as early as Monday, after which he plans to promptly appoint a new cabinet. His immediate priority will be attending a meeting of European Union leaders in Brussels on June 29-30. Among the significant challenges facing the new government is the task of elevating Greece’s sovereign debt rating, which has languished at junk-level since the global financial crisis 13 years ago. Ratings agencies, including Fitch Ratings and Standard & Poor’s, are scheduled to reassess Greece’s economic situation in the second half of the year, with the country currently positioned just below investment grade.
Mitsotakis campaigned on Greece’s economic transformation, highlighting the remarkable recovery of its gross domestic product, which has nearly reached pre-debt-crisis levels. The country has witnessed a substantial reduction in unemployment, more than halving from its peak of 28%, while stocks and bonds have experienced a remarkable surge. The newly elected prime minister has outlined key priorities, including raising wages in the public sector, boosting the overall economy to improve private-sector salaries, upgrading the healthcare system, and expediting court processes.
