On 9 July 1961 Panagiotis Kanellopoulos as Deputy Prime Minister in Konstantinos Karamanlis' government and German Vice-Chancellor Ludwig Erhard signed the protocols of Greece's Treaty of Association with the European Economic Community (EEC). The signing ceremony in Athens was attended by top government officials from the six-member group consisting of Germany, France, Italy, Belgium, Luxemburg and the Netherlands. The six member group was the early precursor of today's 25 member European Union. Economy Minister Aristidis Protopapadakis and Foreign Minister Evangelos Averoff were also present at the ceremony as well as Prime Minister Konstantinos Karamanlis.
His niece, Amalia married Karamanlis. In 1963 he succeeded Karamanlis as leader of the National Radical Union party (ERE).
He was the last Prime Minister (acting as a caretaker for the scheduled for 28 May) prior to the coup d'état of 21 April 1967. He was placed under house arrest for the next seven years. During the events leading to the metapolitefsi (the period of political transition following the fall of the military junta), Phaedon Gizikis actively considered giving Kanellopoulos the mandate to form a transitional government. After the metapolitefsi Kanellopoulos resumed his parliamentary career as a member of the New Democracy party. He declined offers to become President of Greece when the post was offered to him during the metapolitefsi.
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