Greece named radical left-wing economist Yanis Varoufakis its new finance minister on Tuesday, giving him the mammoth task of leading negotiations with international creditors over the country's bailout. The appointment of Varoufakis is seen as a signal that the new anti-austerity Syriza-led government will take a hard line in haggling over the 240-billion-euro ($269 billion) EU-IMF package.
The polyglot Varoufakis, 53, is a vocal critic of the conditions imposed on Greece in return for the bailout granted in 2010 and argues the country can never recover economically until they are relaxed. His was the most eye-catching appointment in 40-year-old Prime Minister Alexis Tsipras' new cabinet, which will give the rest of the world a better picture of a government that promises to challenge at every level the eurozone's belt-tightening measures.
The burly Panos Kammenos was named defence minister in return for leading his small nationalist Independent Greeks (ANEL) party into a coalition government with Syriza. Kammenos threatens to be a controversial member of the government because of his claims that Germany, and its insistence on budgetary rigour, is the main cause of Greece's economic misery.
Greece's European partners have been quick to pour cold water on the issue of debt forgiveness since Syriza stormed to a stunning election victory in Sunday's snap general election. German Chancellor Angela Merkel's spokesman said Monday that Greece's membership in the eurozone "means... sticking to its previous commitments." Merkel offered warmer words to Tsipras on Tuesday, wishing him "much strength and success".
"You are taking office at a difficult time in which you face a great responsibility," Merkel said in the message from the chancellery. In a sign of the EU's willingness to engage with the new leaders in Greece, the head of the 19-nation Eurogroup collection of countries who use the euro, Jeroen Dijsselbloem, had a 15-minute telephone conversation with Varoufakis on Monday.
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