Former Greek Finance Minister Yanis Varoufakis claimed that Greece will never get the new bailout loan and that Prime Minister Alexis Tsipras offered him another Ministry after he resigned.
Varoufakis spoke to the Official Monetary and Financial Institutions Forum (OMFIF) on July 16 and the content of his speech was released on Monday in audio form. Other than his Plan B for a parallel banking system and currency, he said that the Brussels agreement will never go into effect because the differences between Greece and creditors are insurmountable. He said that the required reforms are not reforms but harsh measures that the Greek society will not be able to shoulder.
Varoufakis also said that Europe wants the International Monetary Fund (IMF) to participate in Greece’s third bailout but the Fund is reluctant to do so because it considers the Greek debt is unsustainable. The IMF will not participate unless there is a write-down, something that the European Commission is reluctant to do.
Varoufakis also said that German Finance Minister Wolfgang Schaeuble wants a Grexit for totally different reasons than him. He claimed that Schaeuble wants to use Greece’s exit from the Eurozone to intimidate France so that there is discipline in Europe.
Regarding Greece’s stay in the euro, Varoufakis claimed that this will never happen unless the country gets in the European Central Bank’s Quantitative Easing program as soon as possible.
Finally, he said that Tsipras offered him another Ministry when he resigned from the Finance Ministry but he refused to take it. He said that he is friends with Tsipras but he doesn’t know if their friendship will continue now that he is out of the cabinet.
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