In the elections of 1977, New Democracy was elected once again winning a percentage of 42%. However, the losses were significant, twelve percentage units in less than three years. In these elections the Centre, the last pole of the pro-dictatorship two-party system (ERE - EK), collapsed and the radical party of Andreas Papandreou, PASOK, obtained the position of the main opposition party, gathering 25% of the electorate. Charilaos Florakis’ KKE emerged as the supreme power of the Left (10%), while the Alliance of the smaller leftist parties shrank.

Based on the emerging interior rearrangements, which were unfavourable for his party, Karamanlis focused his activity on foreign policy issues. The issues that he dealt with were the acceleration of the country’s accession to the EEC, the relations of the country with the USA - USSR, but also the taking of initiatives (peace, cooperation) in relation to the neighbouring Balkan countries. In May 1980 Karamanlis was elected President. A few days later, Georgios Rallis had been chosen to replace him in the New Democracy Party and leaded the government until October 1981.