Greece: crossing the red lines

Michael Roberts Blog

News that Greek prime minister Tsipras had moved his finance minister Yanis Varoufakis from direct negotiations with the Eurogroup suggests that the Syriza government is preparing to make more concessions to the Troika to reach agreement on the terms of the release of outstanding funds from the EU and the ECB under the four-extension of the second bailout package. Varoufakis has been replaced by Euclid Tsakalatos, the Oxford-educated economist and previously shadow finance minister when Syriza were in opposition (see my post,
Tsakalatos is possibly more ‘moderate’ and certainly more acceptable for the Eurogroup finance ministers to deal with than the ‘charismatic’ Varoufakis, whom they all seem to hate.

Tsipras’ move towards making more concessions and perhaps dropping the non-negotiable ‘red lines’ that Syriza won’t allow to be breached would probably get support from the Greek people, at least if the current opinion polls are correct. One poll…

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