Ministers Quit as Fraud Probe Closes In
Greek Prime Minister Kyriakos Mitsotakis accepted the resignations of Agriculture Minister Kostas Tsiaras and Civil Protection Minister Yiannis Kefalogiannis on Friday, along with Deputy Health Minister Dimitris Vartzopoulos. The ministers denied wrongdoing but said they resigned to clear the way for the investigation.
EU Prosecutors Trace Fake Farms and Phantom Flocks
Investigators found that subsidy beneficiaries claimed payments for land they did not own and livestock that existed only on paper. Among the suspicious claims: banana plantations on Mount Olympus, olive trees planted inside a military airport, and pastures on an archaeological site. The EPPO says the fraud has continued since about 2018. Roughly 80 percent of pasture subsidies granted from 2017 to 2020 flowed to Crete, where the Mitsotakis family has held political influence for more than a century.
Island of Crete Became Subsidy Magnet
While the number of livestock farmers declined across Greece, Crete registered 13,000 new farmers between 2019 and 2025. The declared count of sheep and goats on the island doubled during the same period. Authorities say most of the €23 million in fraudulent payments was siphoned to Crete. The EPPO has now placed at least 20 current and former members of the ruling New Democracy party under investigation for offenses including breach of trust, computer fraud, and false declarations.
The sources also report that the €23 million in fraudulent payments equals about $26.5 million.
The sources also report that the European Public Prosecutor's Office first released details of the scam last May, a timeline the summary omits.
Premier Taps Ex-EU Commissioner to Rebuild Trust
Mitsotakis appointed Margaritis Schinas, former European Commission vice president, as the new agriculture minister. The prime minister, who was not in office when the fraud began, has vowed to imprison the "thieves" and recover the stolen funds. Opposition parties rejected the reshuffle and renewed demands for early elections, warning that the crisis threatens political stability ahead of a scheduled vote next year.
Legal Shield Protects Lawmakers from Prosecution
Greek law allows ministers to be prosecuted only if parliament lifts their immunity, a step governing majorities have historically blocked. The current investigation marks the second wave of resignations tied to the scandal, after five senior officials stepped down last year. Previous police actions have already produced arrests and fines for subsidy mismanagement, but the EPPO's widening probe suggests the full scope of the fraud remains uncovered.
The sources also report that the European Public Prosecutor's Office first released details of the scam last May, which included accusations against subsidy beneficiaries for making false claims.