The Reason Why The Eurogroup Rushed To Approve The Greek Reform Package?

Tyler Durden's picture

As we noted earlier today, there was some confusion over the plight of the Greek reform proposal document, which initially was said to have been delayed until today, only for the Troika, pardon, Institutions, to flip around and say they had actually received it before midnight on Monday. How could the two be possible? Courtesy of Yannis Koutsomitis, who had the simple but profound idea of looking at the properties tab in the leaked Varoufakis draft of the agreed to proposals, we now know.

As it turns out, the reason why not only the Troika received an agreed to version of the Greek reform proposals "before midnight on Monday", but rushed these through with a favorable agreement today, is that, drumroll, the European Commission drafted the entire letter!


All Yanis Varoufakis had to do was agree to the letter that the Troika had previously written and agreed in advance was agreeable to it, and send it back. The skeptics are encouraged to play around the original pdf "leak" found here.

As for the actual author of the "Greek" reform package, a document which was created at 10:09 pm on Monday, February 23, 2015 (so technically, yes, before midnight on Monday) was one Declan Costello of the European Commission.

Who is Declan? Here is his bio courtesy of the CEPR's Policy Portal, VOX:

Declan Costello


Declan Costello is an Economist working in the Directorate General for Economic and Financial Affairs of the European Commission since 1991. Currently he is Head of Unit in the department responsible for the 'Coordination of structural refroms and of the economic service, which is involved in developing the economic framework for analysing progress with structural reforms at EU and Member State level towards raising growth potential (the so-called Lisbon strategy), and developing EU policies in response to the economic crisis. Prior to this, he was Head of Unit dealing with economic analysis of labour markets and social welfare systems, where he co-ordinated a project to make projections on the economic and budgetary impact of ageing populations for EU Member States. He has a degree in economics from Trinity College Dublin and a Masters degree for the College of Europe, Bruges. Representing the European Commission, Mr. Costello is also an alternate member of the Economic Policy Committee (EPC) which advises and prepares the EU's Council of Economics and Finance Ministers (ECOFIN).

But the biggest joke in all this? As the FT's Peter Spiegel revealed, the IMF, which is an integral part of the Institutional Troika, now pretends to not be on board with the very letter it helped draft (and one doesn't need to believe the pdf story above for that: after all all parties have said they cooperated over the weekend when drafting the final version of the letter) just to give the process some aura of legitimacy.

Dow Jones adds:


Because the tragicomedy must go on!

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Cognitive Dissonance's picture

Is this similar with me signing whatever confession they said they beat out of me?

<This is what you said between blackouts. Sign here and here and here.>

BurningFuld's picture

Nobody can say that Yanis isn't one hell of a tough negotiator. Can they?

GetZeeGold's picture



They had to approve see what was in it.

Gaius Frakkin&#039; Baltar's picture

“developing EU policies in response to the economic crisis”

He was probably board with coughing “print moar” whenever he was asked for ideas on "containing" the economic crisis. Forging a PDF is so much fun in comparison.

Wolferl's picture

So, the Troika now drafts the documents of the "Greek government" and those puppet clowns Varoufakis and Tsirpas just put their three crosses on them? Told ya, the Greeks are just a debt colony of Brussels. Took Varoufakis and Tsirpas a few week to get it, but finally ...

smlbizman's picture

is this the guy of the "who's on first"...costellos?

Manthong's picture

That’s OK.

The protests and riots are much more interesting in the summer.

walküre's picture

GREXIT is on the table for the next 4 months. Preparations starting now.

Reforms not due until July which is right past the 4 months extension is the DEAD give away.

FED rate hikes starting around that time as well.

Everything Is Awesome!!!!!!!!!!!!!!!!!!!!

Againstthelie's picture

No. It's Democracy and the sheeple love it.

NoDebt's picture

At this point I'm not sure if there ever was a meeting, if Greece agreed to anything, drafted or approved a letter..... Frankly, I seriously doubt that Greece even exists.  

There is no Dana, only Zuul.


kowalli's picture

new normal - you are fucked at the birth. PERIOD

Pure Evil's picture

We're all slaves to the Annunaki.

Now get that pickaxe and dig for gold.

TheSecondLaw's picture

NoDebt - that's fucking witty.  Made my evening.  Thanks for the mirth.

froze25's picture

Enter Golden Dawn, stage left.

GMadScientist's picture

Quick what's Greek for Sieg Heil?

Pure Evil's picture

Well, at least we know where Hitler picked up that limp assed Nazi salute.

Hey boyz, do my pits smell?

MarsInScorpio's picture

How do you say "moar whore" in Greek?



Nomatrix's picture

The "disagreement" was the value of the bribe and not whether Greece would no longer be a debt's colony.

Stumpy4516's picture

The Greeks will be lucky to remain at the level of debt colony, I think the EU, Varoufakis and Tsirrpas may have other plans.   Varoufakis and Tsirrpas did not go the Greeks hat in hand and appologize saying it all they could do, they told the Greeks this was a win, a victory, despite it being contrary to all promises they made to get elected.  Not only that, they gave away the Greeks peoples right to make decisions without the bankers approval for the next 4 months.

The worry is that Varoufakis and Tsirpas were always puppets of the bankers.  This is has been nothing but rehearsed theater and that is why the bankers got what they wanted plus important SOVEREIGNTY rights of independent Greeks were given away to the bankers in this agreement.  The Greeks should beware of Tsirpas continuing to move/convert bank debt into Greek public debt while the Greeks get pennies and the foreign banks get dollars in the end.  And perhaps even more importantly to watch how Tsirpas uses their counties infrastructure, natural resources and land (islands in particular) as collateral as the debt is converted into public/citizen/govt debt.  In this way Tsirpas can serve the bankers true intent to turn Greece from a troublesome debt colony to a foreign owned land mass filled with helpless renters.  While also giving away any soverign voting rights to make changes. (Then rates for services and taxes will increase in dramatic fashiion and through foreclosure what was once privately owned property will also be taken.)

Maybe the jury is still out on Tsirpas and Varoufakis but if the Greeks do not get rid of them now it may be too late if they wait in order to evaluate these two further.


stewie's picture

Unbelievable!  I wish I had read that article last month.  I would have restrained my cheering for the Greeks.  Tsipras must be in on it too.

Stumpy4516's picture

I had seen some of this recently but that article pulls it together.  It is clear.  And I have to agree that they must both be in on this.

They may go to extreme measures to prevent Golder Dawn from rising.

I bookmarked the page to share in other comments.

Disgusted in this and how easily I bought into the theater show until just recently. 

msamour's picture

If I were Varoufakis, and Tsipras, I would now go to a plebscite to ask the public for a mandate to default. If public says no default, then no one can accuse them of not having tried...

TruthInSunshine's picture

Dear Yanis:

We received your prior letter of commitment and took the liberty of
revising it for you.

Please see attached, sign immediately & return (or not - we have your signature on file).


European Commission

cc: IMF

Ghordius's picture

TIS, since the EU Commission is a group of commissioned officers specifically appointed to act as permanent secretaries at the EU at the behalf of the national ministers like Varoufakis and Tsipras...

... where is the technical difference between this and when my secretary prints out a letter for me to sign? perhaps it's time to revise this Myth of the EU Council "power"

bah, I don't expect even a fraction of the gallery to understand this point. next: what is a minister?

kraschenbern's picture

The career bureaucrats are running the store?

Ghordius's picture

you mean Varoufakis should type his own letters, instead of having a glorified secretary typing it? as I said: bah. further, as I said, the real thing is what the Greek Parliament agrees to... or not

Pure Evil's picture

Shall we expect more riots?

Or, have the Greeks assumed the position?

All that olive oil should come in handy about now.

TruthInSunshine's picture

Has the larger point that Greece is allegedly "negotiating" the terms of a bailout package to remain a member state of the EU, with Yanis "elected" to represent the will of Greeks - not to act as a rubber stamp in a non-negotiation, adhesion process - been lost on you?

I bet it has based on your comment.

Ghordius's picture

Yanis Varoufakis was not elected to be Finance Minister of Greece. He was appointed to this task by the Greek Parliament, that can throw him out anytime it wishes

If the Greek Parliament feels he has acted as a rubber stamp in a "non-negotiation, adhesion process", it will boot him and Tsipras out

but taking the PDF signature of a glorified advisory secretary as evidence... sorry, it is comparable to that of a White House intern's for a US Presidential Decree

Pure Evil's picture

Uh oh, the secrets out now.

You don't really expect Obama to take time off from golf and cornholin' to write a Presidential Decree do you?

Silly rabbit, Trix is for kids.

Balkan's picture

In your paradigm, you're applying to another company, and their secretary prints out a letter for you to sign.

GMadScientist's picture

I sign NDAs all the time. You had a point?

tarsubil's picture

And the President of the United States is a public servant elected by the people. I got a bridge in Brooklyn to sell you.

The Hidden Hand's picture

You need to sharpen up your bureaucratic pecksniffian pencil:-

“In behalf of” means “for the benefit of” or “in the interest of”

“On behalf of” means “in place of” or “as the agent of"

Or did you forget the /sarc?

DeadFred's picture

Be cautious about downloading pdfs that support an alternative view, they can be laden with interesting code to track or mess with those who are interested in them. I once downloaded the incredibly badly done pdf that the Whitehouse has as proof of Obama's birth certificate and my computer disintegrated within days. Could have been a coincidence but the symptoms started immediately after so I think I'll take your word on this pdf.

Balkan's picture

The mere .pdf of this certificate destroyed your computer. What to think about the original certificate itself!

Pure Evil's picture

His computer just couldn't accept the bald face lies in the .pdf and decided to hari kari itself.

Balkan's picture

And they even didn't trust Greeks giving them the .docx file of the letter. Kindergarten.

Pladizow's picture

There is only one solution - Revolution and collapse!

PartysOver's picture

I wonder if the greeks can strike and protest as well as the French?  Perhaps they should travel to France to get some pointers.

BobPaulson's picture

A revolution won't happen until there is either cultural humiliation, murder of large number of civilians or kids starving. People are waaaay to comfortable for that still.

Peter Pan's picture

What these politicians don't realise is that one day soon ordinary people are going to take shots at politicians and then things are either going to change for the better or the politicians are going to declare a full on police state.

And all this because they are happy to park the equivalent of the world's total indebtedness in tax havens holding almost $30 trillion, export people's jobs and crreate desd end jobs like invading other countries, spying on its people and Homeland Security.

pods's picture

So we can put this one next to the scanned image of Chalky's birth certificate?


froze25's picture

To be clear Obama's birth certificate was multiple scanned documents that were put together to form a composite image.  That is why there were so many inconsistencies.  Including but not limited to the use of Microsoft's font that makes letters appear to be typed on a type writer, that font didn't exist for many years later.  They also forgot to "flatten" the image before they created the PDF and left the layers accessible proving that it was a composite.  It is amazing (not really) that the media didn't cover this and white washed it for him.  His birth record is a shame as he is in total.