A political firestorm is engulfing Greece’s ruling New Democracy party following revelations that a politically connected communications firm, Blue Skies, may have operated as a covert funding and propaganda vehicle for the government of Prime Minister Kyriakos Mitsotakis.

According to Politico, opposition parties, including PASOK, Syriza, and the New Left, are calling for an immediate judicial investigation into what they describe as a “shadow financing” scandal involving Blue Skies — a little-known offshoot of the major public relations agency V+O. The company is accused of employing high-ranking New Democracy officials in what critics claim amounts to undisclosed political financing and orchestrating an online disinformation campaign in support of the government.

A Propaganda Machine Allegation

At the center of the controversy is the claim that Blue Skies paid salaries to more than a dozen individuals who simultaneously held key positions within New Democracy, effectively operating as a covert wing of the party. According to reporting by Documento, over half of the 57 listed Blue Skies employees had close political ties to Mitsotakis or his inner circle, including Minister of Labor Domna Michailidou, Deputy Minister of Transport Konstantinos Kyranakis, and Thanasis Bakolas, the outgoing Secretary General of the European People’s Party.

Critics allege that many of these individuals used their roles at the agency to coordinate online efforts that included personal attacks against critics of the government — including grieving families of victims of the 2023 Tempi train disaster, Greece’s deadliest rail accident. A separate investigation by Inside Story linked Blue Skies employees to a controversial social media platform known as “Team Truth,” which has been accused of running coordinated trolling campaigns.

“This is an extreme institutional aberration that undermines democracy,” said New Left MP Nasos Iliopoulos, adding that evidence suggests public funds may have indirectly supported the government’s communications machinery.

PASOK, the main center-left opposition party, has demanded “answers about the activities of this company and the links between New Democracy, a propaganda machine, and private companies, between which black political money seems to be produced and channelled.”

Government Denials and Deflections

The Mitsotakis government has firmly denied any formal connection with Blue Skies. Government spokesman Pavlos Marinakis dismissed the allegations as “a relic of science fiction,” insisting that party members are free to work in the private sector while holding unpaid party roles.

“In New Democracy, a position in the party is not a job,” Marinakis said. “People work in the private sector. It is good that they do. We want more professionals involved in political life.”

Kyranakis confirmed he worked for Blue Skies from 2016 to 2019, when he also served as New Democracy’s deputy spokesman. He maintained he was a “normal employee who paid taxes normally.” Government officials have so far declined to respond to specific questions about other staff still appearing on the agency’s payroll, such as Orsaki Roussetou, a current member of the prime minister’s communications office.

Blue Skies, meanwhile, denied all allegations of misconduct, stating: “Criticism about indirect party funding does not correspond to reality.” The company said that while it has employed politically experienced staff, this is a common industry practice. It also distanced itself from the activities of “Team Truth,” claiming the company does not monitor the personal social media activity of its staff and condemns “any use of anonymity to cause harm or defamation.”

Still, Marinakis offered a rare public defense of the controversial online platform, stating, “I have great respect for them,” while denying any direct involvement.

Political Fallout and EU Reaction

The scandal has quickly escalated beyond Greece’s borders. Syriza MEP Kostas Arvanitis has called on the European Commission and the European Parliament to intervene, warning that the allegations seriously damage the integrity of Greece’s democratic process.

“After so many revelations, we expect the immediate intervention of the competent judicial authorities,” PASOK declared in a statement.