The Chief Economic Adviser for Allianz Mohamed A. El-Erian has argued that the recent “sidelining” of the Greek Minister of Finances Yanis Varoufakis from the negotiations will increase the chances of a an agreement being reached between Greece and its creditors.

Mr. El-Erian, who expressed his opinion in an article for Bloomberg, called Mr. Varoufakis “a breath of fresh air in this protracted and exhausting Greek economic drama” and noted that his negotiating style “attracted quite a bit of attention but understandably proved unpalatable to his European partners”.

Furthermore, he asserts that PM Alexis Tsipras had “little choice” to replace Mr. Varoufakis as Greece’s chief negotiator, as cash reserves are running dangerously low and the creditors unwilling to provide further aid until a comprehensive agreement is reached.

The economist concludes that unless the country’s creditors must ultimately accept Mr. Varoufakis’ argument – that austerity must be relaxed for the reforms to have a real, long-term effect – otherwise a “Graccident” may be likely.

Varoufakis responds to article

Mr. Varoufakis responded to the article, thanking the economist for his kind words, while noting that he remains the Minister of Finances and Greece’s chief negotiator at the Eurogroup.