Greece: Who Wants the Worst Job in Europe?

Greece’s Finance Minister George Papaconstantinou.

By Terence Roth and Costas Paris
Much of Europe’s projects, not least the euro itself, now hinge on the tense political drama playing out in Athens.
The key figure is Greek Finance Minister George Papaconstantinou and his role in the vortex of the European debt crisis.
Highly trained and trusted by his EU counterparts and the IMF, Mr. Papaconstantinou has been so demonized by many Greeks as the orchestrator of harsh EU-imposed spending cuts that some members of the governing Socialist Party now consider him untenable.
A worried Prime Minister George Papandreou fears his five-seat majority in parliament could begin to dissolve unless he manages to defuse public protests that turned violent outside the parliament building again Wednesday.
Mr. Papandreou first tried inviting the chief conservative opposition party into a broad national government to put political consensus behind reforms, but he was rebuffed Wednesday night. Then he announced that he would reshuffle his cabinet and put his government before a confidence-vote among Socialist deputies.
This brought his unpopular finance minister right back into focus.
Many deputies warn they won’t vote in support of any government with Mr. Papaconstantinou staying in his post.
After more than a year of taking abuse both in Brussels and at home, it’s an ultimatum the London School of Economics graduate might even welcome.
After a long night with aides searching for solutions, the Prime Minister Thursday still faces three central problems.
The first is that Mr. Papaconstantinou has developed a long-standing relationship with the EU and the IMF. A new Athens frontman at this late stage could be a setback for talks to secure a new aid package for Greece that could run up to €100 billion when all is counted.
The second is finding someone who would want the worst job in Europe. Few have Mr. Papaconstinou’s credentials.  Insiders say some likely candidates lack either financial know-how, international experience or even English skills.
The one standout possibility right now is former ECB governor Lucas Papademos, who hasn’t spoken publicly about how he would receive a summons.
The third is that a prolonged government crisis would dash whatever confidence there still is in Greek prospects, derail relations with the EU and IMF and make a default very likely within a few weeks.
Insiders say one idea emerging from all-night talks would be to split the finance ministry into two posts, one for focusing on domestic policy and the other on negotiating with foreign lenders to resolve the debt crisis.
This would allow Mr. Papaconstantinou to stay on as Athens’ debt plenipotentiary to negotiate rescue packages, leaving the “domestic” finance minister to do the grim work at home.
Done right, that task would take another €28 billion out of the economy, kill off more entitlements, slash state-sector workforce and prolong a three-year recession if the EU and IMF criteria are be be met.
Which leaves the questions: who wants that privilege and how long before this person becomes the Socialist Party’s next liability because he or she is simply doing his job?