Greek Cabinet Shuffled Amid EU Funds Scandal

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by Finance News Network


Greek Prime Minister Kyriakos Mitsotakis reshuffled his cabinet on Friday in response to a growing scandal involving alleged fraud related to European Union farm funds. The move comes as European prosecutors investigate dozens of Greek stockbreeders accused of falsely claiming millions of euros in EU subsidies, purportedly aided by state employees and conservative politicians. The affair has already resulted in ministerial resignations and a significant fine imposed on Greece by the EU for mismanagement of subsidies by its OPEKEPE payment agency.

The European Chief Prosecutor has requested the Greek parliament to lift the immunity of at least 11 lawmakers, including ministers, to facilitate investigations into their alleged roles in the scheme. While the EU prosecutor has not publicly named the lawmakers and ministers involved, the investigation concerns alleged crimes against the EU’s financial interests in 2021, including instigation of breach of trust, computer fraud, and false attestation to obtain unlawful benefits. A minister and four senior officials in the government had previously resigned last year due to their alleged involvement in the fraud.

As part of the reshuffle, Margaritis Schinas, formerly a European Commission vice-president, has been appointed as agriculture minister, replacing Kostas Tsiaras. Evangelos Tournas, a retired Greek air force officer, was named climate crisis and civil protection minister, replacing Giannis Kefalogiannis. Several other officials, including a deputy health minister, a party secretary, and the government’s parliamentary spokesman, had also resigned earlier. OPEKEPE is an agency that handles more than 2 billion euros in annual EU farm aid.

Opposition parties have criticised the cabinet reshuffle and renewed calls for early elections, arguing that no reshuffle can save a government built around a majority of people investigated by the judiciary. The new cabinet members will be sworn in on Saturday. Mitsotakis’ New Democracy party currently holds 156 seats in Greece’s 300-seat parliament.


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