Government under pressure over misallocated EU farm subsidies

The Greek government, led by Prime Minister Kyriakos Mitsotakis, is facing mounting political and legal pressure over the misallocation of EU farm subsidies, with investigations revealing a pattern of fraudulent disbursements to ineligible recipients.

At the heart of the controversy is former minister Makis Voridis, a prominent figure in the ruling conservative party, who oversaw the Ministry of Agricultural Development and Food from 2019 to 2021. Voridis has publicly denied any wrongdoing, stating that his approval of subsidies was a routine administrative act, consistent with the actions of his predecessors.

Despite his denials, the government is moving swiftly to contain the fallout. During Monday's cabinet meeting, Mitsotakis expressed self-criticism and pledged that the “stolen” subsidies would be returned to the European Union, emphasizing that taxpayers should not bear the cost, as was common practice in the past when EU fines were issued.

“I accept the weight of responsibility in the name of all those who governed and did not change a state that needed change,” Mitsotakis said, adding that “the clientelistic system is over.”

In parallel, Greek prosecutors have requested convictions for seven defendants in a separate trial involving alleged fraud against the EU. The individuals are accused of receiving subsidies they were not entitled to, handled through the Payment and Control Agency for Guidance and Guarantee Community Aid (OPEKEPE).

OPEKEPE, created in 2001 to ensure transparency in farm subsidy disbursements, is now set to be dismantled. Its responsibilities will be transferred to the Independent Authority for Public Revenue (AADE), the same agency that oversees taxation, in an effort to centralize and reinforce accountability.

The government must now navigate two critical fronts: restoring trust in Greece’s farm subsidy system to satisfy EU partners, and determining the political fate of Voridis—without inflaming party divisions or undermining rule-of-law principles.