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27 Apr 2015
Tsipras reshuffles negotiation team, Varoufakis out, Tsakalotos in - BBH
FXStreet (Barcelona) - Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, shares the key developments surrounding the Greece scenario, noting that the Greek FM, Varoufakis, was demoted as Tsipras reshuffled Greece's negotiating team, having replaced by deputy foreign minister, Tsakalotos.
Key Quotes
“Minister Tsipras has announced a shuffling of his negotiating team, which includes a demotion of Varoufakis. While the controversial finance minister retains his post, a new negotiating team. The deputy Foreign Minister, Tsakalotos, a soft-spoken Oxford-educated economist will coordinate the group of negotiators going forward. He is well-liked by the official creditors, according to press reports.”
“There have been two other personnel changes. Varoufakis's general secretary, Theocharakis, who has been leading the technical-level talks, has been reassigned. He will now focus on devising a growth strategy upon which a new deal after the current one expires in June.”
“Separately, a close ally of deputy Prime Minister Dragasakis, will take over responsibility for talks with the official creditors.”
“Varoufakis has not been particularly cooperative the EU, ECB and IMF officials gathering technical data on Greek finances as the Greek government has been critical not of the name Troika but of its substance. Recall that a preliminary ruling by the European Court of Justice also noted that the ECB ought not to be in the Troika as it represents a conflict of interest. In any event, the new team is expected to be more cooperative.”
“Ironically, just as the Tsipras government has repeatedly tried to circumvent the Eurogroup of finance minister and reached out to the heads of state (and was criticized for doing do), the Eurogroup has been trying to bypass the Greek finance minister.”
Key Quotes
“Minister Tsipras has announced a shuffling of his negotiating team, which includes a demotion of Varoufakis. While the controversial finance minister retains his post, a new negotiating team. The deputy Foreign Minister, Tsakalotos, a soft-spoken Oxford-educated economist will coordinate the group of negotiators going forward. He is well-liked by the official creditors, according to press reports.”
“There have been two other personnel changes. Varoufakis's general secretary, Theocharakis, who has been leading the technical-level talks, has been reassigned. He will now focus on devising a growth strategy upon which a new deal after the current one expires in June.”
“Separately, a close ally of deputy Prime Minister Dragasakis, will take over responsibility for talks with the official creditors.”
“Varoufakis has not been particularly cooperative the EU, ECB and IMF officials gathering technical data on Greek finances as the Greek government has been critical not of the name Troika but of its substance. Recall that a preliminary ruling by the European Court of Justice also noted that the ECB ought not to be in the Troika as it represents a conflict of interest. In any event, the new team is expected to be more cooperative.”
“Ironically, just as the Tsipras government has repeatedly tried to circumvent the Eurogroup of finance minister and reached out to the heads of state (and was criticized for doing do), the Eurogroup has been trying to bypass the Greek finance minister.”