U.S. Economist Galbraith Explains Varoufakis’ Plan B for Greece



varoufakis-galbreith-1070American economist James Galbraith explains in his latest book the Plan B for Greece that was drafted last year by former Greek finance minister Yanis Varoufakis in the event bailout negotiations failed.

In his book, “Welcome to the Poisoned Chalice: The Destruction of Greece and the Future of Europe,” which has been translated into Greek, Galbraith analyzes the proposal Varoufakis made last spring when negotiations with Greece’s creditors had come to a standstill and the country was on the brink of bankruptcy and at risk of being kicked out of the euro zone.

At the time, the U.S. economist had been appointed to coordinate the plan by the former finance minister. Varoufakis had proposed that Greece declares state of emergency, nationalization of the Bank of Greece, the transformation of bank deposits into a new drachma and emergency public order measures.

In the book, Galbraith describes in detail Varoufakis’ plan for moving Greece to a parallel banking system last year. According to the book, the plan was called Plan X and all persons involved operated in utter secrecy, taking spy-like safety measures.

Other then the emergency measures on the economy, the book says that the ministries of defense and the interior would be involved in maintaining public order, control fuel supplies and civil servants such as policemen, hospital staff and teachers would be mobilized to implement the plan.

However, Greek Prime Minister Alexis Tsipras did not ask to be briefed on the plan and terminated the endeavor by sending an extensive memo to all parties involved in May.


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