The Greek Letter - eeekathimerini.com - Political shake - ups ... US-Greece relations one year into the Trump Administration and more

 

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Political shake-ups Constantine CapsaskisNewsletter Editor Welcome to the weekly round-up of news by Kathimerini English Edition. The possibility of a new party, associated with the president of the association of Tempe victims families Maria Karystianou, has led to political shuffling, particularly, as opinion polls have so far recorded that such a party would significantly tap into the Greek protest and anti-establishment vote. This includes voters from both sides of the political spectrum, with respondents ranging from supporters of ultra-Orthodox nationalist Niki party (63.4%) all the way to the left-wing SYRIZA (26.8%) suggesting that they would be “very” or “quite” likely to vote for Karystianou. Ruling New Democracy will likely not lose many voters to this new party, with only 10% of government supporters in one poll suggesting that they would be “very” or “likely” to support it. Deputy Prime Minister Kostis Hatzidakis, along these lines, noted that the government has already seen the extent of its electoral erosion due to the Tempe disaster, adding that “from there on, if a Karystianou party materialises, this does not involve New Democracy. It involves the opposition or citizens who are aligning in one way or another to vote for an opposition party”. This also seems to be the current political calculation of main opposition party PASOK, which also sees low level of support for this new party from its own voters, with party planners likely believing that it is more threatening to parties further to its left. SYRIZA, on the other hand, is already counting the first of its losses to this new potential party, with party leader Sokratis Famellos announcing that he was expelling MEP Nikos Farantouris following comments by the latter that he would “welcome” its creation and did not rule out working with it.   At a recent press conference, Karystianou criticized former Prime Minister Alexis Tsipras, also heavily rumoured to be about to launch his own political initiative ahead of the next elections. This, along with the continued fragmentation of the progressive space in Greece, have undoubtedly complicated Tsipras’ return to an active political role. Another important factor that will determine the composition of the next parliament overall will be the performance of Greece’s smaller parties and whether they will succeed in passing the required threshold of 3% of the vote. They include Voice of Reason, led by far-right MEP Afroditi Latinopoulou, Yanis Varoufakis’ MeRA25 party, the New Left, and the Movement for Democracy party of former SYRIZA leader Stefanos Kasselakis. It is worth noting that together these parties are polling at above 11% of the total vote. Spotlight While farmers continued their protests and road blocks through the week, a meeting between their representatives and the government was set for next week. The news came even as the government was set to harden its stance, stating that it would not remain a “spectator” to possible escalation. However, blockades across the country eased following the announcement of the meeting, with bus routes between Athens and Thessaloniki also set to restart following a spate of cancellations earlier this week. When selecting the delegation that will represent them at the meeting, the nationwide convention saw the farmers express their concerns that they have limited expectations that their demands will be met. On a sidenote, the sector will undoubtedly be impacted by the signing of a trade agreement between the European Union and the Mercosur countries of Latin America, with Greece throughout the negotiation process having been ardent in securing protections for goods with protected designation of origin (PDO) and the protection of citrus fruits.   Defense Minister Nikos Dendias stated that he would present amendments to his ministry’s military reform bill, that has proven controversial (particularly with serving members of the Hellenic Armed Forces). The legislation, entitled “Transition of the Armed Forces to the New Era”, completed its parliamentary committee review, with the minister noting that “no one claims that the legislation is [set in] stone… and cannot change” and promising a “creative exchange of views” during the final debate. The most controversial aspect of the bill has been a reform of the promotion pathway for non-commissioned officers, something set to be limited by the new legislation. “We have some very specific thoughts, which we will present to you so that their anxiety is mitigated”, noted Dendias during the review. The ministry would later present limited changes to the legislation. At the same time, Greece has highlighted six defense programs for financing through the European Commission’s Security Action for Europe (SAFE) defense loan mechanism, including the development of a communications satellite with Cyprus and Norway, the acquisition of microsatellites with synthetic imaging capabilities with Poland and the further development of anti-drone systems for the Hellenic Air Force with Bulgaria and Cyprus.

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OPINION Tom EllisEditor-in-Chief, Kathimerini English Edition US-Greece relations one year into the Trump Administration[Reuters] Hopes for an even closer cooperation on defense, energy and other fields, but also uncertainty about the impact Donald Trump’s foreign policy might have on the traditionally tense relations between Greece and Turkey, characterized the first year of the US President’s second term, in the eyes of the Greek political world. Trump’s return to the White House for a second term in January 2025, triggered both concerns and expectations within Greece’s government where views are divided. The liberal wing of the ruling center right New Democracy – as well as most of the opposition parties – have serious reservations about the US president’s intentions, while members of the right wing of ND have welcomed many of his policies, especially with respect to the woke agenda and immigration. The one thing the different factions within the government, and across the political spectrum, seem to agree on is their concern about what a possible involvement in some kind of mediation between Greece and Turkey will lead too, as they worry that Trump’s publicly declared affinity for Turkish President Recep Tayyip Erdogan will not allow him to act as an honest broker. Over the last few months there has been periodic talk about a possible initiative by the US President to bring the two allies closer, although no such move appears imminent. Washington’s recent actions in Venezuela and the confrontational rhetoric with respect to Greenland, have added to the uneasiness in Athens. In any case, the first year of the Trump Administration has seen a continuation and deepening of bilateral ties culminating in the signing of energy agreements last November in Athens – from the US part, by Secretaries of the Interior Doug Burgum, and Energy Chris Wright – in the context of which Greece became the first country to conclude a long-term deal for bringing US liquefied natural gas into Europe, including for potential transfer to Ukraine. The deals were seen as consolidating Greece’s position as an anchor of geopolitical stability and engine for economic growth in Southeastern Europe, while highlighting the ever closer ties between Athens and Washington which both sides describe as a solid strategic partnership in a volatile region that is further enhanced by the trilateral cooperation scheme of Greece, Cyprus and Israel, which the US supports. Still, Athens feels that till now Washington has not shown publicly, loud and clear, the appreciation this special relationship – which includes the significant role played by the Greek American community – deserves.

CHART OF THE WEEK

Greek fixed term account holders remain the biggest losers from the recent spate of interest rate hikes by the European Central Bank over the last three years, as they continue to be offered significantly lower rates than the Eurozone average. Namely, according to the latest data by the ECB, the average interest rate for fixed term accounts stands at only 1.12% compared to a Eurozone average of 1.80%. This means that Greece ranks second lowest across the economic area, above only Cyprus (1.11%). Of course, this is not a recent trend and has been the case throughout this period. In fact, the biggest divergence between the Greek and Eurozone average was recorded in December 2023, with a Greek average rate of 1.84% compared to a Eurozone average of 3.29%.

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ECONOMY IN A NUTSHELL

“The Athens Exchange (ATHEX) general index closed at 2,207.73 points, up 2.30% from last week.”

“Greece was ranked second lowest in the EU in 2024 in terms of average annual adjusted full-time wages (18,000 euros) according to Eurostat, with wages in the county being around 55% lower than the average.”

“Issues continue to be observed in the establishment and running of a business in Greece according to the World Bank’s ‘Business Ready 2025’ report. While, the country is rated ‘Excellent’ in terms of the regulatory framework, it barely passes the mark in operational effectiveness.”

WHAT'S ON THE AGENDA

12/01/2026Hellenic Post: Several Hellenic Post branches will begin to be shut down, as a review of 158 stores under threat concluded that the majority should cease operations. 13/01/2026Farmers: Striking farmers have agreed to meet with the government on Tuesday. 13/01/2026Taxi strike: Taxi drivers in the capital region of Attica have announced a fresh 48-hour strike, with the union primarily protesting the mandatory transition to electric vehicles. 15/01/2026Kimon: F601 ‘Kimon’, the Hellenic Navy’s new French-built FDI frigate, is expected to arrive in Greece.

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PODCAST

02/12/2025 • 14:45Greece’s bet on AIAs countries around the world scramble to see who is going to win the AI race, Greece is also looking to secure its own AI future. Prime Minister Kyriakos Mitsotakis’ emphasis on AI, coupled by signature deals with OpenAI and Mistral AI, is putting a spotlight on Greece’s efforts to play a larger role on the AI frontier. Niko Efstathiou, an Athens based journalist and author, joins Thanos Davelis as we look into these developments and explore the ways Greece is betting on AI.

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