The appointment, which will come into effect as of June 29, comes as relations between the Greek government and European lenders deteriorate – with an agreement on conditions for unlocking a much needed bailout fund worth €7.2bn failing to materialise.
European Commission president, Jean-Claude Juncker, has recently suggested the Syriza party misled voters, while Greek prime minister Alexander Tsipras accused the IMF of “criminal responsibility” for the role it has played in the debt crisis. According to analysts at BNP Paribas, the country is “staring down the barrel at default.”
The background of Psalidopoulo is not unique
Michalis Psalidopoulo is an economics professor at the University of Athens, and served as a professor at Tufts University in Massachusetts, US between 2010 and 2014. He was nominated after a previous appointee turned down the role following a backlash from the anti-austerity party.
The former professor’s appointment, despite his training and career as an economist, is unlikely to see a deal reached between Greece and European politicians. The background of Psalidopoulo is not unique, with a number of Syriza politicians having also previously served as economists at universities around the world. The Greek finance minister, Yanis Varoufakis, previously lectured at the University of Texas, Austin, while the influential Syriza MP Costas Lapavitsas taught at the SOAS, University of London for many years. Further, according to Reuters, Psalidopoulo’s appointment came as a proposal from the finance minister. Varoufakis, known for his flippant statements and uncompromising character, is perhaps the most reviled of all Greek officials by EU lenders.
