Greece Says It Is Changing Team That Negotiates With Creditors –

This is an outstanding, must-read article by the NYT. Check it out!

via Greece Says It Is Changing Team That Negotiates With Creditors –

Greece brings in Deputy Foreign Minister, Euclid Tsakalotos, a quietly spoken, Oxford educated economist to deal with day to day negotiations with creditors – he is also close politically to Prime Minister, Alexis Tsipras. The Finance Minister is still in charge but the day to day negotiations are handled by a team closer to the PM.  The move has been immediately seized upon positively both internationally and in Greece.

The NYT describes Yanis Varoufakis as ‘outspoken, motor-cycle riding renegade’. This weekend he drew deep criticism from Europes’  finance ministers at the Riga meeting and the world’s media has united against him. Meanwhile, media in Greece has been calling for Varoufakis’ resignation, and has widely reported the move as a way of sidelining the finance minister. The NYT later added, ‘many accuse the Greek minister of narcisissism’.

Other positive news is that Angela Merkel is in close phone contact with Alexis Tsipras.

Personally, I have considerable experience of dealing with narcissists and whilst they’re often talented, they don’t listen and can be extremely damaging in their inter-personal skills – ultimately they often damage an organization’s reputation.

Additionally, I think that Varoufakis’ reputation as an economist has been seriously over-hyped. As evidence I suggest taking a look at his citations in Google Scholar. For me, there are three important observations:

  1. There is no mention of his publication in leading academic economic journals
  2. The number of hits is not particularly high, and
  3. His only publication with over a hundred citations is entitled ‘Game Theory: a critical introduction’. I seriously question the relevance of both games theory and critical theory to negotiating a lifeline for Greece.

Personally, I think it would be best for Greece if Varoufakis resigns as soon as possible.


2 responses

  1. Appreciating the time and energy you put into your website and in depth information you present.
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  2. Dr Alf is right. Varoufakis should never have been chosen for creditor negotiations in the first place and his statements during the early stages of his appointment were not credible and personally having dealt with many liars, cheats, scoundrels and persons prone to exaggeration over the years during my corporate life, 22 years of interim management and wearing my other hat dealing with my late father’s tenants, I would not trust Varoufakis further than I could throw him.

    Replacing him with someone more capable and sensible is a good move but the fundamental fact is that Greece has a long and consistent record of failing to deliver on its obligations, reneging on debts, failing to control its economy and failing to inculcate in its people any sense of the need to be more productive and hardworking.

    It is as if Greece, which in ancient times built a large empire and gave us some of the world’s greatest philosophy and culture, has had the innate qualities it once had, removed from the heads of its people, along with any sense of responsibility for the situation they now find themselves in.

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