Papandreou Planning Retirement, FT Deutschland Reports

Tyler Durden's picture

According to the German edition of the FT, G-Pap is once again using the R-card (that would be resigning-cum-retiring) - the last time he did this was back in early July when he had to persuade the government to vote for the July 21 Greek bailout #2. He was bluffing then. He is likely bluffing now, although if he isn't, it means game over for Greece and probably for the European dream, not to mention united currency. From FT: "[G-Pap] has been trying for months to keep his country from bankruptcy - Tens of thousands of Greeks are against the austerity policies of the government on the barricades. No wonder the prime minister is thinking of throwing the rocks." Since this is google translation, we assume "throwing rocks" is loosely translated as getting the f#*$ out of Dodge while the getting is good, while the private jet still has fuel and while the gold is still in the cargo hold.

From FT:

The Greek Prime Minister George Papandreou has information to the Financial Times Germany over the past three weeks, twice spoken with confidants about his resignation. Both times he had "offered his resignation" - and then gone on but it said in the context of Papandreou. The head of government of the ordeal hold between the protests of their own people against the austerity program, on the one hand and the requirements of EU and International Monetary Fund (IMF) on the other was not long. Papandreou was feeling powerless, an insider said: "Greece decides on anything."

 

One of the prime minister's resignation amid the duration of negotiations for new tools and during the enforcement of tens of thousands of job cuts in public services would be a "disaster," said the insider. "But when fatigue has set itself the office only once in his head, he will sooner or later step to do." A government spokesman denied any intention to resign: "The information you receive is nonsense."

 

A resignation of Papandreou would likely lead to quick elections, the opposition calls for months. Opposition leader Antonis Samaras has already made it clear that he wants to renegotiate contracts with the EU and IMF. Therefore, the elections increased uncertainty in financial markets with a view of Greece and Europe.

 

Papandreou had until the middle of last week in Germany "more respect" calls for its reform efforts. Back in June he had offered his resignation even indirectly, if this would have made an agreement with Samaras.

If there was one piece of bad news that Europe could do without, this is it. What next, nobody knows.

h/t @LISwires