The Greek Tragedy continues

The Greek Tragedy continues

Our friends at CITI hosted a conference call on Monday with Citi Chief Economist Willem Buiter joined by George Papandreou, the former Greek Prime Minister; Filippos Sachinidis, the former Greek Finance Minister; Jose Barroso, the former President of the European Commission and the former Prime Minister of Portugal.

Key points from the Greek tragedy follow:

1) There is a wide belief that due to parliament giving Prime Minister Tsipras full negotiating power in Brussels the package will pass through parliament by Wednesday. He has got widespread support from multiple parties within the Greek parliament.

2) George Papandreou all but ruled out a snap election as it won’t be easy in the middle of the summer and Tsipras will want to be in a better position than he is now before going to elections.

3) The Merkel waiting game has shown its benefits. We saw very typical behaviour from her and the German Government as they didn’t panic and took a tough stance.

4) Willem Buiter believes that Tsipras has signed up to a deal that is much worse than before and believes it has too much austerity and will cause years of recession. He is extremely concerned that this will not work. George Papandreou believes the terms Tsipras has now signed up to are very draconian. While there is widespread relief in Greece that a deal has been reached, Tsipras has managed to lose a lot of trust and credibility in the process.

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Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.

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