Educating Lagarde – The Greek-speaking “lobby” at the ECB – 2024-04-19 10:56:47

Three central bankers are considered to be the main “doers” who made Christine Lagarde learn Greek… And sometimes preach the start of the usually boring general councils of the European Central Bank with the phrases “good morning” and “how are you today?” , making serious and seasoned central bankers look askance at each other, with French central banker Francois de Gallo, an advocate of “Francophonie”, wondering how it is that a language other than English and French dominates the ECB’s hideouts.

The Greek-speaking “lobby”

The three Greek-speaking central bankers of Greece, Yiannis Stournaras, of Cyprus, Konstantinos Herodotou, and of Ireland, Gabriel Maklouf (with roots in Greece and Cyprus and a naturalized Greek). Until now, they have created a kind of team within the European Bank and often communicate with each other in Greek during the long-hour ECB meetings, while the others try to understand what they are saying. In general, as was said, they had created a Greek-speaking “lobby” (from where it did not exist) in the strongest bank in Europe. Its meetings are held in absolute secrecy (only its decisions are made public).

However, one of the central bankers, Konstantinos Herodotou, is no longer in the “team”, as his term has ended and the President of Cyprus, Nikos Christodoulidis, has exercised his constitutional right and replaced him with his chosen one, Dr. Christodoulos Patsalidis. With the decision of the Cypriot President for the appointment of Mr. Patsalidis to be officially announced, an end was given to the scenario that has been developed in the last period and thus closing an important pending matter regarding the financial system of the country.

Replacing a central bank governor in the Eurozone before the end of his term is an extremely difficult and at the same time difficult task. Those who attempted it failed miserably. You will certainly remember the efforts made by SYRIZA to replace Yiannis Stournaras, when his name was involved in the Novartis scandal. Or when the then speaker of the Parliament, Zoe Konstantopoulou, wanted to arrest him if he did not come to testify in Parliament. No one was able to move him from the powerful position of governor of the Bank of Greece, at a time when all governors are protected by the President of the European Central Bank and the members of the Board of Directors.

However, in the case of Mr. Herodotus (one of the most successful bankers, a fan of Christine Lagarde) it is different. His term ended, the President of Cyprus could very well renew him, as Kyriakos Mitsotakis did to Yiannis Stournaras, but he preferred Mr. Patsalidis. Some may be surprised, but in Cyprus, every President wants, as you hear them say in the press offices, his own central banker. The previous President Nikos Anastasiadis had appointed Herodotos, the current President Patsalides.

It is simply noted that in the last presidential elections of 2023, and especially during the pre-election period, Mr. Patsalidis was the head of Nikos Christodoulides’ staff for economic matters. In addition, his name was found and “played” high on the list to take over the portfolio of the Minister of Finance, while at the end of March 2023 he was appointed by Nikos Christodoulidis to the position of Special Advisor to the President of the Republic on economic matters, providing his services without pay .

The new Governor of the Central Bank of Cyprus has, according to his CV, a wealth of experience and is an excellent connoisseur of the financial and wider economic situation, having in fact previously worked for seven years, from 1989 to 1996, at the CBC, specifically in Management of External Public Debt and Foreign Exchange Reserves, while he was also president of the Cyprus Banks Association.

“The Kalimera”

As far as the Greek lobby at the ECB is concerned, this will certainly continue. “kalimera” will still open the meetings and Christine Lagarde, never saying either to Giannis Stournaras “Efharisto Giannis”, will have difficulty until she learns “christodoulos” (for Mr. Patsalidis), while “Gavriil” for the Irish banker he has learned it by heart.

After all, Mrs. Lagarde (the strong lady of the ECB) learned a lot of Greek words in the meantime. He came twice to Athens and once to Nicosia. The first time he came to Athens. it was in 2009 as the finance minister of France to take part in a meeting of the Bilderberg Club in Asteras Vouliagmenis. In which two queens took part (Sofia of Spain and Beatrix of the Netherlands) as well as a multitude of politicians, bankers, academics and businessmen.

The second time was, relatively recently, at the gathering of European bankers in Athens. When the French come to our country, they always prefer Mitropoleos Street (as well as Charles of England and Camilla), they always buy something there or always have something to eat. Lagarde that evening went to dine and enjoy Greek delicacies at “Cicada and Mermigas”, together with three of the ECB directors. Mr. Stournaras welcomed her warmly, with a dinner where the speeches focused on how Greece came out of the crisis, the difficulties the citizens went through and how we reached the investment stage.