Fianance Minister Yanis Varoufakis handed in his resignation mere hours after Greek voters gave a resounding “Oxi” (No) to the conditions of an economic bailout — the result the leftist Syriza-led government wanted.
Although he was willing to face Greece’s creditors head on, Varoufakis called it quits to open the door to someone with whom Eurogroup would prefer to work with to secure a deal to help the fumbling Greek economy.
READ MORE: After ‘no’ vote, Greece’s PM faces tough task of regaining creditors trust
The man set to take the reins of those talks will be Euclid Tsakalotos, who comes to the role at a time of great uncertainty for Greece — as the country and Europe wait to see whether the outcome of the referendum will lead to Greece’s exit from the Eurozone.
“I cannot hide from you that I am quite nervous. I am not taking on this job at the easiest point in Greek history,” he told reporters after being sworn in on Monday.
Tsakalotos, who was the Alternate Foreign Minister for International Economic Relations, has already had been trying to broker a deal with creditors since April, when the Greek government sent him to the table over Varoufakis.
“He’s fairly well respected by the creditors, and is viewed as a safe harbour compared with the Varoufakis storm,” Megan Greene, Manulife and John Hancock Asset Management’s chief economist, told The Independent.
READ MORE: The case for Greece: when it forgave Germany’s debt
The Netherlands-born, England-educated economist will be a formidable negotiator. He shaped the governing Syriza party’s economic policy but is seen as more moderate than Varoufakis.
“He is one of the most sensible/moderate figures in Syriza and his appointment would increase the chances for a sensible negotiation, and a positive outcome,” economist Demetrios Efstahthiou told CNBC.
He received a PhD in economics at Oxford University and went on to teach at the University of Kent and at the Athens University of Economics.
“He is a pure left-wing individual and professor. His door was always open to all students, to discuss university issues or political issues, or for a normal chat,” Thanos Tsoukinidas, who knew Tsakalotos when he was challenging reforms of the Greek education system about 10 years ago, told Reuters.
His involvement in the teacher’s union preceded his foray into politics and his election, under Syriza, in 2012 — the same year he co-authored the book Crucible of Resistance: Greece, the Eurozone and the World Economic Crisis, one of six books bearing his name.
READ MORE: Feta, olives, oil stockpiled amid Greek turmoil, importers say
According to The Telegraph, his left-wing approach to economic policy doesn’t mean he’s aiming to see Greece leave the Eurozone.
“A Greek road to socialism where you exit the euro and do your own national strategy seems to be a straight re-run of Britain in the 1970s and France in the 1980s,” The Telegraph reported him saying in 2014. “The national roads seemed to have failed. We need an international flavour to any alternatives.”
In a statement written on June 30, the day Greece failed to make a $1.6 billion payment to the International Monetary Fund, Tsakalotos said the referendum would bring “greater flexibility” to the negotiation process.
Eurogroup leaders and finance ministers will meet in Brussels on Tuesday to discuss the way forward on bailing out Greece’s economy.
“It’s a final chance for Greece to propose a new reform plan that could start the ball rolling towards a new aid package, but the journey looks perilous,” The Guardian reported.
It’ll be a crucial task for Tsakalotos’ first day on the job.
Comments