THESSALONIKI – Prime Minister Kyriakos Mitsotakis acknowledged on Sunday that widespread fraud linked to EU agricultural subsidies represents a “chronic problem” for Greece’s farm sector, while stressing that the practice predates his administration.

Speaking at a press briefing after unveiling next year’s economic agenda, Mitsotakis said Greek authorities estimate that at least €23 million (US$27 million) was wrongly disbursed since 2016, three years before his New Democracy government came to power.

“Our government cannot take full responsibility for this matter,” he said, noting that the European Union is leading a probe into the allegations.

The inquiry intensified three months ago when EU investigators raided the offices of OPEKEPE, the state agency that oversees the distribution of EU farm aid. The agency has since been dissolved. According to government data, OPEKEPE disbursed more than €3 billion annually, mainly in subsidies to some 680,000 farmers.

A parallel investigation by Greek authorities examined 6,354 aid recipients, identifying 1,036 beneficiaries who had received illegal payments totalling €23 million. Investigators found most cases of fraudulent claims originated from Crete, often involving false declarations of farmland and livestock ownership.

Mitsotakis conceded his administration “did not manage to clean up OPEKEPE,” but stressed that recovery of funds has begun and corrective measures are underway. “The government is now on the right path to fix this problem,” he said.

The European Commission has yet to release its own estimate of the scale of the fraud. Still, the case has underscored persistent weaknesses in Greece’s public administration, with experts pointing to entrenched patronage networks and systemic corruption.

Mitsotakis insisted Athens has “nothing to hide or to fear” from Brussels’ scrutiny, noting that subsidy fraud investigations are not unique to Greece but are conducted across EU member states.