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Reuters: Dijsselbloem’s possible fall from Eurogroup President and its impact on Greece

His statements triggered furious reactions

Newsroom March 24 06:18

Jeroen Dijsselbloem’s position as as EuroGroup President could be on the line, according to Reuters folloiwng his demeaning remarks about southern Europea squandering money on “women and drinking”. From Reuters:

By upsetting southern Europeans with remarks about drinking and womanizing, Eurogroup president Jeroen Dijsselbloem has damaged his hopes of retaining his job and raised the possibility of a round of horse-trading over key economic posts in the euro zone.
Dijsselbloem, the Dutch finance minister, chairs meetings of the 19 euro zone finance ministers who make decisions for the single currency area. Known for his firm line on bailout terms for Greece, he was clear favorite until this week to be renamed to the post once his current term ends in January.
Then came the row over an interview in which Dijsselbloem suggested the southern EU states could not expect aid if they squandered their money on “booze and women”, triggering a furious reaction from Portugal, Italy, Spain and Greece.
Some euro zone officials said the affair would blow over and would not affect the decision on the Eurogroup chairman role. But others said it was a good excuse for some governments to push for replacing Dijsselbloem.
“It is more than a storm in a teacup, because he has a lot of enemies in the South and they have just been waiting for something like this to use against him,” one euro zone official said.
With no obvious candidate to replace him, uncertainty over Dijsselbloem’s succession could disrupt difficult euro zone talks with Greece on terms for releasing more bailout funds.
And if the role does become vacant, negotiations over a replacement would be complicated by national and political party interests as the EU also prepares to fill two other top jobs.
Spanish Finance Minister Luis de Guindos has competed with Dijsselbloem for the Eurogroup role in the past, and Spain has long complained that despite being the euro zone’s number four economy it does not hold major posts in the EU at the moment.
Madrid would welcome the Eurogroup job for de Guindos, although it might be more interested in securing the position of European Central Bank vice president next year, when the eight-year term of Portugal’s Vitor Constancio comes to an end.
Spain has good candidates for the ECB – former senior IMF and Spanish central bank official Jose Vinals and the general manager of the Bank for International Settlements, Jaime Caruana.

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