Greece’s prime minister Kyriakos Mitsotakis on Monday called for fresh elections on June 25th, which will introduce a new system expected to grant him the majority he needs to govern alone.
Mitsotakis’s New Democracy party secured 40.8 per cent of Sunday’s vote, double the score obtained by the radical left party Syriza, but it finished four seats short of the 150 needed for a parliamentary majority. Under the new electoral system beginning in June, the first party will be rewarded by up to 50 bonus seats, allowing Mr Mitsotakis to form a government on his own.
“I believe there are no conditions for forming a government by the present parliament,” Mr Mitsotakis said when calling for the June 25th ballot.
Mr Mitsotakis has repeatedly said he wants to avoid a coalition and hold out for a majority government and markets welcomed the results, with the Athens stock exchange reaching its highest level in almost a decade.
Greek bonds also rallied on Monday, with the prospect of a second term likely leading to an upgrade in the country’s credit rating from junk to investment grade.
According to the Greek constitution, as soon as Mr Mitsotakis declares he cannot form a coalition, the next parties in line have three days to attempt to form a government. Expectations are that both Syriza and the third-largest party, centre-left Pasok, will be unable to do so. Once all options fail, a caretaker government is appointed and fresh elections called.
If he wins a second term, Mr Mitsotakis is expected to continue economic reforms with a pro-business attitude and accelerate the absorption of the EU’s post-pandemic recovery funds. “He speaks the language of the investment community and an outcome that delivers an ND majority government would be widely welcome,” said Mujtaba Rahman, head of Eurasia Group’s Europe practice. However, “there are concerns on the rule of law under his watch”, he added.
The prime minister has been embroiled in a spyware scandal in which Greece’s intelligence service, overseen by Mr Mitsotakis’s chief of staff and nephew, spied on politicians and journalists. The government has also been faced accusations over a decline in media pluralism while Mr Mitsotakis has come under fire from human rights groups for illegal pushbacks of refugees at the country’s borders – though his tough stance on migration is widely supported in Greece.
Last week the New York Times published a video showing border guards picking up migrants who had already landed on the Greek island of Lesbos and putting them on rafts at sea before letting them drift back towards Turkish shores. The newspaper identified the migrants and interviewed them in Turkey.
The European Commission has sent a formal request to Greek authorities requesting this incident be fully and independently investigated. Pushing back asylum seekers before they had a chance to have their requests filed and analysed is illegal under EU law.
“It is necessary that proper follow-up is taken by Greek authorities,” said EU home affairs commissioner Ylva Johansson on Monday. “The European Commission stands ready to take formal steps, as appropriate” she added.
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