The election by parliament of Prokopis Pavlopoulos, a centre-right former cabinet minister, as Greece’s new president on Wednesday night has sparked criticism from members of the governing Syriza party’s far-left faction who wanted to see an “anti-austerity” politician in the largely ceremonial post of head of state.
Puzzled Syriza voters wondered how Mr Pavlopoulos could have been adopted as the candidate of a government that wants to get rid of outdated political practices, given his track record while in office. Read more
Less than a week into his new job, Greece’s finance minister is already performing the kolotoumbes, or policy somersaults, anticipated by several Athens commentators.
Yanis Varoufakis, an eloquent economics professor, has removed a key plank of the leftwing Syriza party’s pre-election platform: its longstanding demand that creditors should write off at least one-third of Greece’s huge public debt, which last year amounted to 175 per cent of national output.
Visiting London on Monday, the second stop of a tour of European capitals, Mr Varoufakis told the Financial Times that Athens would restructure its entire public debt by swapping bailout loans for new growth-linked bonds and issuing what he called “perpetual” bonds to replace Greek bonds owned by the European central bank.
The U-turn on the debt issue was so abrupt that some observers wondered whether Mr Varoufakis went off-message as he tried to reassure Greece’s eurozone partners and City investors that the Syriza-led government was serious about meeting its obligations to the EU and International Monetary Fund. Read more
Greece’s latest annual survey of living standards, published on Monday by the country’s independent statistical agency Elstat, highlights the deepening impact on households of a wrenching six-year recession. Some figures leap off the page, even though observers in Athens are used to a flow of gloomy statistics. Read more
While officials at the debt management agency prepare to trumpet Greece’s return to international capital markets, for long-suffering Athenians it is just another day marked by anti-austerity protests in the centre of the capital.
The five-year bond issue will be snapped up by investors eager for extra yield. But Greek risk, though diminishing, is unlikely to disappear soon. Here is a quick checklist of informal indicators tracked by local analysts. Read more
A protestor outside the Greek parliament (Milos Bicanski/Getty Images)
It’s no secret in Athens that austerity-weary Greeks would like to see a grand coalition emerge from Sunday’s elections in Germany. The participation in government of Peer Steinbrück and his Social Democrats, say café pundits, could bring a softening of the “keep-them-on-the-reform-treadmill” approach associated with Angela Merkel’s previous term as chancellor. Read more