Mitsotakis Reshuffles Greek Cabinet as EU Prosecutors Probe €23 Million Agricultural Subsidy Fraud

Prime Minister Mitsotakis overhauls his cabinet as EU prosecutors investigate Greek lawmakers for siphoning €23M in agricultural funds for phantom livestock.

By: AXL Media

Published: Apr 6, 2026, 10:07 AM EDT

Source: Information for this report was sourced from OCCRP

A Political Crisis Triggered by Agricultural Fraud

Prime Minister Kyriakos Mitsotakis has initiated a significant government reshuffle in an urgent attempt to contain the fallout from a massive fraud investigation involving European Union agricultural funds. The scandal centers on allegations from the European Public Prosecutor’s Office that millions of euros were diverted through the exploitation of loopholes in the EU’s Common Agricultural Policy. On Monday, Mitsotakis formally urged European prosecutors to expedite their decisions on which Greek lawmakers will face prosecution, seeking to provide transparency as the investigation moves into the heart of the Hellenic Parliament.

The Mechanics of the Phantom Livestock Scheme

The core of the EPPO investigation suggests a systematic effort to defraud the subsidy system that dates back to at least 2018. Investigators allege that Greek stockbreeders and their accomplices successfully claimed approximately €23 million ($27 million) for "phantom" livestock and agricultural land that did not meet mandatory eligibility requirements. The inquiry gained significant momentum in October 2025 following the detention of 37 individuals linked to an organized criminal group. That specific cell is accused of defrauding the system of more than €19.6 million, highlighting the scale and sophistication of the operation.

Cabinet Resignations and New Appointments

The mounting legal pressure led to a wave of high-profile resignations within the Greek administration last Friday. In response, the Prime Minister moved quickly over the weekend to swear in a new cabinet aimed at restoring public and European confidence. Government spokesman Pavlos Marinakis announced in a televised statement that Margaritis Schinas, a former Vice President of the European Commission, has been appointed as the new Minister of Agriculture. This appointment is seen as a strategic move to leverage Schinas's deep experience with EU institutions to navigate the ongoing forensic audit of the country’s agricultural claims.