It has forced even traditional supporters of New Democracy to wonder whether Greece is now being transformed into a rogue state. Under Mitsotakis, the judiciary has been devalued, and the administration’s own violation of the rule of law has gone unpunished. Complaints of police corruption have soared since New Democracy have come to power, and reports of a spyware scandal involving the cabinet itself have caused outrage at home and abroad. This has meant the increased criminalization of refugees, in flagrant defiance of international law, and the continued pushback of migrants at sea and on land, according to several independent reports. Law and order has been a key pillar of Mitsotakis’s first term in office. On the other hand, indirect taxes, targeting mainly consumption and the working class, contribute more than 60 percent of the overall revenues of the state. Among EU countries, the capital gains tax remains low - like Hungary’s, it sits at just 15 percent - and dividends tax is even lower - 5 percent. Meanwhile, Greece’s tax system targets the poor - in what is effectively a flat-rate tax system - and gives the rich a free pass. Moreover, inflation has meant that though the economy grew by 5.9 percent in 2022 (mainly due to the return of tourism and an injection from the European recovery fund), Greek workers saw their purchasing power nonetheless decrease by 7 percent.Ī second term for New Democracy promises more privatizations, particularly in the areas of water, heath, and education. Indeed, regaining its investment grade rating, which it is expected to do later this year, became a “national goal.” Though the economy has officially rebounded, inequality continues to rise. Prime minister Kyriakos Mitsotakis ran on a stability ticket and cited the economy’s “recovery” as a main achievement during his first term. Rights for workers, renters, migrants, and the environment have all suffered since 2019, as inequality has continued to rise. New Democracy’s first term in office was known for corruption, cruelty, and the implementation of a slew of neoliberal policies across the board. A second election will take place on June 25, which should allow New Democracy to form a government. The conservative party hasn’t managed to form a government yet, however, due to an electoral reform introduced by Syriza in 2016, forcing an almost-absolute majority for any party, or the formation of coalitions. Syriza, in opposition since the Right came to power in 2019, was crushed at the polls, losing to New Democracy by a full twenty points.Īll preelection polls had suggested a narrow victory for New Democracy, but the results were far more punishing, with Syriza managing to win just 20 percent of the total vote. The Left suffered a historic defeat in national elections held in Greece two weeks ago.
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