Inflation and Low Incomes Threaten Mitsotakis Government, Reports German Media

Greek Prime Minister Kyriakos Mitsotakis faces growing public dissatisfaction as economic hardships persist despite progress in national financial indicators. A *Handelsblatt* report highlights that real incomes remain 23.7% lower than pre-crisis levels, with inflation, high energy costs, and stagnant wages fueling frustration. While New Democracy leads in polls, its shrinking margin and declining approval rates pose significant challenges to Mitsotakis' leadership.

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The German financial newspaper Handelsblatt has highlighted growing dissatisfaction among Greek citizens with the government of Prime Minister Kyriakos Mitsotakis and his New Democracy (ND) party.

The report underscores the challenges Mitsotakis faces, as economic hardships persist despite Greece's progress in improving key financial indicators.

Greeks Struggle with Daily Realities

While Greece has achieved notable strides in stabilising its economy after the devastating 2010-2016 financial crisis, many citizens feel their daily lives have not improved. Handelsblatt points out that the country lost a quarter of its economic performance during the crisis, with private assets shrinking by 40% due to a collapsing real estate market—losses from which most households have yet to recover.

A striking example of this disconnect is real income. According to the OECD, after adjusting for inflation, average income in Greece is now 23.7% lower than in 2009. The gross monthly wage of a full-time private-sector employee, which averaged €1,379 in 2009, now stands at just €1,325.

Dissatisfaction Grows

Efforts by the Greek government to address these challenges—such as raising the minimum wage—have not been enough to assuage public frustration. High inflation, soaring energy costs, and stagnant incomes remain key concerns. A November poll by the Metron Analysis Institute revealed that two-thirds of respondents believe Greece is moving in the wrong direction, with 66% rating the government's performance as negative.

Political Implications for Mitsotakis

This growing discontent represents a serious political challenge for Prime Minister Mitsotakis. While New Democracy remains Greece’s strongest party, polling at 30%, its lead is shrinking. PASOK trails at 17%, but ND’s current numbers may not be sufficient to secure an absolute majority in parliament.

Moreover, Mitsotakis’ personal approval is under pressure. While 31% of Greeks still consider him the most suitable leader for the country, 30% say none of the current party leaders fit the role. Social democrat Nikos Androulakis, leader of PASOK, comes in a distant second at 8%.

A Critical Juncture

The Handelsblatt report paints a picture of a country at a crossroads, with citizens demanding tangible improvements in their daily lives. As inflation and economic stagnation persist, Mitsotakis and New Democracy must navigate growing disillusionment to retain their political standing. For many Greeks, the question remains: when will the benefits of economic recovery reach the people?

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