Greek Prime Minister Kyriakos Mitsotakis on Monday called for fresh elections on June 25, which would introduce a new system expected to grant him the majority needed to govern alone A prospect welcomed by the market.
Mitsotakis’ NDP won 40.8 percent of the vote on Sunday, twice as many as Syriza’s Syriza, but four short of the 150 seats needed for a parliamentary majority. Under the new electoral system starting in June, the First party will gain up to 50 extra seats, allowing Mitsotakis to form a government on his own.
“I don’t think the current parliament is in a position to form a government,” Mitsotakis said, calling for a June 25 vote.
Mitsotakis has repeatedly said he wants to avoid a coalition government, insisting a majority government and markets welcomed the result, with the Athens stock exchange hitting its highest level in almost a decade.
Greek bonds also rallied on Monday as the prospect of re-election could lead to an upgrade of the country’s credit rating From junk to investment grade“Based on the first-round results, this significantly increases the likelihood of another Northern Territory government, which would indicate fiscal and economic policy continuity, and be credit-friendly,” said Moody’s senior vice-president Steven Dyke.
According to the Greek constitution, once Mitsotakis declares that a coalition government cannot be formed, the next political parties will have three days to try to form a government. Neither Syriza nor the third-largest party, center-left Pasok, are expected to fail to do so. Once all options fail, a caretaker government will be appointed and new elections called.
If he wins re-election, Mitsotakis is expected to continue economic reforms with a pro-business attitude and accelerate the absorption of EU post-epidemic recovery funds. “He speaks the language of the investment community and the outcome of an ND majority government would be widely welcomed,” said Mujtaba Rahman, head of European operations at Eurasia Group. However, “under his leadership, there are concerns about the rule of law,” he said. added.
The prime minister has been embroiled in a spyware scandal in which the Greek intelligence service, overseen by Mitsotakis’ chief of staff and nephew, spied on politicians and journalists. The government has also been blamed for the decline of media pluralism, while Mitsotakis has come under fire from human rights groups for illegally rejecting refugees at the country’s borders – despite widespread support in Greece for his tough stance on immigration.
Last week, The New York Times published a video showing border agents picking up migrants who had landed on the Greek island of Lesbos and placing them on rafts at sea before letting them drift back to the coast of Turkey. The newspaper identified the migrants and interviewed them in Turkey.
The European Commission has sent a formal request to the Greek authorities for a full and independent investigation into the incident. Under EU law, it is illegal to turn away asylum seekers before they have had the opportunity to submit and analyze their request.
“It is necessary for the Greek authorities to take appropriate follow-up actions,” EU Home Affairs Commissioner Ylva Johansson said on Monday. “The European Commission stands ready to take appropriate formal measures,” she added.