Assessing Six Years of New Democracy Rule in Greece: The Uneven Legacy of Mitsotakis' Governance

Assessing Six Years of New Democracy Rule in Greece: The Uneven Legacy of Mitsotakis' Governance

As Greece marks six years under the leadership of Prime Minister Kyriakos Mitsotakis and his center-right New Democracy party, the government is highlighting what it describes as a period of economic recovery and reform. In a recent address, Mitsotakis outlined key achievements since his party took office in July 2019, pointing to a significant drop in unemployment, strong GDP growth, a surge in foreign investment, the digital transformation of public services, and reforms in healthcare, justice, public administration, and education.

According to the prime minister, Greece now boasts its lowest unemployment rate since 2008, economic growth that outpaces the eurozone average, and record levels of foreign investment. He emphasized improvements across public infrastructure and services, claiming progress in everything from pension processing to transportation, digital governance, and youth housing policies. In his words, Greece is moving forward in all vital sectors.

But while the government compares its performance favorably to the dark years of economic crisis, the more telling comparison is how Greece fares today within the European Union. Despite signs of progress, the country remains in a transitional phase—making strides in some areas while still grappling with structural weaknesses that prevent it from fully converging with the EU’s core economies.

Unemployment, for instance, has fallen dramatically—from 17% in 2019 to 7.9% as of May 2025. However, that figure still stands above the EU average of 5.9%. Moreover, the apparent improvement masks a deeper trend: the country’s workforce has actually shrunk over the past decade. In March 2025, there were 77,000 fewer people employed than in March 2010, a decline that reflects demographic shifts and a continued exodus of skilled workers abroad.

Economic growth has been relatively strong, with Greece recording a 2.2% increase in GDP in the first quarter of 2025, well above the eurozone’s 0.6%. Yet this growth comes from a low base, as the country is still recovering from a prolonged and severe recession. Productivity, investment, and consumption levels remain below EU norms. In nominal terms, Greece’s GDP is €237.6 billion—still slightly below its 2008 pre-crisis level of €242 billion, underscoring the depth of the economic hole the country is climbing out of.
Social indicators tell a more sobering story. According to Greece’s national statistics authority, poverty and material deprivation remain widespread. The share of people living in severe deprivation has changed little since 2019, and more than half the population is at risk of poverty before receiving social transfers—evidence of the heavy reliance on state support to maintain living standards.

Foreign direct investment reached nearly €6 billion in 2024, a significant increase from the previous year, though still below the 2022 peak. However, most of these inflows are concentrated in real estate and tourism, sectors that do little to bolster long-term productivity. Meanwhile, Greece’s net international investment position—a measure of how much the country owes versus what it owns abroad—remains deeply negative, worsening from -99.8% of GDP in 2010 to -131.6% today. That figure highlights both the economy’s vulnerability and investors’ lingering caution.

The digitalization of public services, especially through the gov.gr platform, has been one of the government’s most visible successes, simplifying bureaucratic processes for citizens. But broader administrative reform, including efforts to improve meritocracy and reduce political interference, has yet to take root. A recent scandal involving the public payments authority (OPEKEPE) revealed enduring weaknesses in state oversight and challenged the credibility of the so-called “Executive State” model.
In the judiciary, digital tools have been introduced, but systemic inefficiencies persist. Court cases in Greece often take more than five years to resolve, making the system one of the slowest in the EU. Over the past six years, both the quality and independence of Greece’s justice institutions have deteriorated, to the point where international observers increasingly cite the country as a negative example.

Housing remains a pressing challenge, particularly for younger generations. Despite new programs like “My Home,” Greece still suffers from the highest rate of housing cost overburden in the EU. Rents are rising faster than incomes, and homeownership has plummeted—from 84.6% two decades ago to just 61% today, the steepest drop anywhere in Europe.

The education system faces similarly entrenched problems. While there have been modest reforms, Greece still ranks near the bottom of the EU in education funding and performance. Public universities are under-resourced and poorly connected to the labor market, and national test scores remain low. Inequality between urban and rural schools continues to grow, widening the opportunity gap for students based on geography.

After six years in power, the Mitsotakis government presents a narrative of recovery and modernization. While some gains are undeniable the broader picture reveals a country still struggling to bridge the gap with its European peers.