This is a must-read article from the FT as Greece‘s new Finance Minister goes nuclear. Check it out!
The Finance Minister, Yanis Varoufakis is a career economist, without any previous political experience.
Apart from rejecting the ‘troika’ and Greece’s legal obligations, the new government has announced that they have abandoned proposals for reform.
I expect financial markets and the Euro to be under pressure from this enormous escalation. I fear that all sides have not done appropriate risk analysis and matched it to effective mitigation. The people of Greece have voted for a new government and to challenge the ‘troika’ but I hope they do not live to regret it.
Let’s hope that some cool, wise heads can facilitate proper dialogue between the various parties. Europe is already in depression and this new escalation will have widespread implications for all Eurozone countries and the World economy beyond.