Greek finance minister resigns after decisive 'no' bailout vote

Professors of economics don't make politicians, although I am lead to believe former Finance minister Varoufakis makes a proficient pianist.. Varoufakis is no sacrificial EU pagan wicker man conferred a martyr's death, equity/stocks in Portugal, Spain and Italy reflect sentiment that peripheral spread change exceeds 5% , the 'average prime offer rate' exceeds the yield.

This was not just a 'no' it was a resounding 'fY' no, to paraphrase, a unequivocal up yours Junckers, a solid shove it Shultz moment. Both these fake political clown wannabes have been harpooned but their own poisonous rhetoric. Bluffs have been called in no uncertain terms. Junckers and Shultz are a testament to the arrogance of 'shoo in democracy', an untenable position. I will leave it at that as market sentiment will do the rest.

At this point it wouldn't surprise me if we hear that Jeffrey Sachs is the new interim Greek finance minister. I think we can expect to see Varoufakis making many more media appearances and being just as effective by applying pressure from the outside. As things get tougher for Greeks with the banks still closed, public opinion in Europe will start to turn against the European establishment and it might end up being hard for them to refuse whatever deal Greece is offering. Only time will tell.

Where is Demis Roussos when you need him?

Hi M3M3M3, your philosophy, as in the nature of human response to unacceptable hardship is pin point. Varoufakis could have well thrown in the towel because the only basis for negotiation could well be both sides of the same coin, a complete restructuring programme in respect of pension reform etc will be a prerequisite for debt sustainability .

But debt sustainability mean a write down of 50% and mutualisation on any future bail out deal. Greece needs a smooth exit route from the Euro zone, for a competitive devaluation. But if Greece is afforded a debt 'sleepwalk', Italy, Portugal and Spain will inevitably follow suit, with similar demands for fiscal leniency. Sterling/Euro is heading towards the 1.42 mark, a signal of a lack of confidence.

Varoufakis was either sacked, or he jumped ship before the Greek situation becomes exponentially worse in the coming weeks.

Either way, his champagne socialist lifestyle will not be affected like the rank and file Greeks that will live through the after effects of the decisions of this loony left government.

“I shall wear the creditors’ loathing with pride,” Varoufakis said in his announcement.

Amazingly stupid and arrogant thing to say -- from the "Finance Minister" of a country that will run out of cash this week, and that has over 25% unemployment.

Broadsheet European press are quoting senior EU 'officials' declaring Sundays referendum 'neither legally nor factually correct', certainly attitudes appear to have hardened the Eurogroup Head Jeroen Dijsselbloem stance a contentious, 'does not bring us closer to a solution' and economists pointing to the increasing likelihood of messy ejection from the single currency.

Yanis Varoufakis resignation, he suggests that 'Eurogroup participants' made it clear he was not at all welcome, has been replaced by renowned economist, Euclid Tsakalotos, politically of a similar ilk to Varoufakis.

European politics especially in the South has consistently veered left of centre, 10 year benchmark government bonds in Italy and Spain after a initial rise steadied. Tomorrow morning both Tusk and Juncker will be briefing the European parliament, it going to be a bruising encounter.

@it'sonly...

Broadsheet European press are quoting senior EU 'officials' declaring Sundays referendum 'neither legally nor factually correct',

That doesn't actually mean anything, strictly speaking.

JerseyBoy,

Amazingly stupid and arrogant thing to say -- from the "Finance Minister" of a country that will run out of cash this week, and that has over 25% unemployment.

Champagne socialists do stupid and arrogance best. Look at Francois Hollande. Top of the poo pile.

It's kind of scary to see the European left braying as if there has been some sort of victory with this vote. I wonder who they will be blaming in the coming weeks as the Greek situation worsens....

Suffice to say Varoufakis will be straight makin' dat money like a dirty capitalist. Whether it's from his 5 grand a week rental home or a new lucrative book deal he won't be at a Greek soup kitchen with his compatriots as the amateur hour of this left wing lunatic government runs its' course.

Luca I agree the suggestion carries not a shred of legitimacy on the results of the referendum. I am just disappointed to read that EU officials could be stooping to briefing.

@itsonly

Hmm. Don't misinterpret me. I feel exactly the same....

Not at all Luca, I actually thought for a fleeting moment that this referendum would bring some positive vibe for a 'settlement' of sorts, common ground but I have just read a note that German Vice Chancellor Sigmar Gabriel has said Greece will face insolvency so maintaining the same tough line...