Varoufakis Reveals Pegged Currency Plan for Greece, Admits Mistakes



3588b8a8010f88846007457cf3cb87fdGreece’s former finance minister Yanis Varoufakis said on Monday that Athens had a Plan B that never materialized and that Greece made mistakes over its bailout negotiations.

Varoufakis gave an interview to CNN’s Christiane Amanpour in which he took the responsibility for some of the mistakes the Greek government made in the long negotiations with the troika of international creditors. However, he insisted on putting the blame to lenders for the austerity reforms the third bailout package entails.

“The very powerful troika of creditors were not interested in coming to a sensible, honorable, mutually beneficial agreement,” he said. “They were far more interested in humiliating this government and overthrowing it, or at least making sure that it overthrows itself in terms of its policies, than they were interested in an agreement that would for instance ensure that they would get most of their money back,” he added.

Regarding negotiations and the alternative plans Greece had, Varoufakis revealed that there was a plan for a temporary national currency.

“It’s not true we did not have a Plan B. We had a Plan B,” Varoufakis said. “We, in the Ministry of Finance, developed it. Under the aegis of the Prime Minister, who ordered us to do this, even before we came in the Ministry of Finance.”

Varoufakis said that the plan was a temporary national currency, a euro-denominated currency the government would print, pegged to the value of the euro. This way the country would avoid an exit from the Eurozone.

“The fact of the matter is that the Plan B was not energized — I didn’t get the green light to effect it, to push the button, if you want,” Varoufakis said, adding that this was one of the reasons he resigned.

Speaking of Prime Minister Alexis Tsipras and the harsh reforms he agreed to implement in order for Greece to get financial aid and avoid bankruptcy, he said that he didn’t have another choice: “He was faced with a choice: Commit suicide or be executed,” he said characteristically.

“Alexis Tsipras decided that it would be best for the Greek people for this government to stay put and to implement a program which the very same government disagrees with,” Varoufakis said.

“People like me thought that it would be more honorable, and in the long term more appropriate, for us to resign. This is why I resigned. But I recognize his arguments as being equally powerful as mine,” he added.


7 COMMENTS

  1. I find this odd that Tsipras for all his campaign rhetoric over the years never had policies and procedure in place should a Grexit been realized. Had there been preparations he simply could have stood up at the negotiating table and walked out of the meeting returned to his hotel and await the phone calls. Alexis simply lost his nerve, capitulated to the creditors and disgraced himself before the Greek electorate.

  2. LOL, LOL, LOL. He admits mistakes ? The biggest mistake was appointing Varoufakis as a finance minister. He’s incompetent, and he still has not addressed the main problem, which demonstrates just how stupid economists are.

    Here is a hard fact. The EU could write off the debt completely, and it still wouldn’t stop Greece from going bankrupt. That’s what this moron doesn’t get through his thick head. I have to believe the reason Varoufakis is bald, is there is no blood circulation going to his head. The human brain requires good blood circulation, to think clearly, and intelligently.

    What is Greece’s main problem ? INFRASTRUCTURE. Without infrastructure a country has no income. With infrastructure a country does have an income, it can pay it’s bills with.

    Guess what else INFRASTRUCTURE does ? It EMPLOYS people. Employs as in creates new JOBS. Guess what that does ? It causes a country’s unemployment numbers to go down.

    I am amazed at the stupidity I have witnessed, regarding this issue. Greece needs professionals, not amateurs, that have turned businesses around financially, and have experience solving financial problems. Greece doesn’t need these inexperienced, incompetent, academic, amateurs, whose stupidity caused this mess in the first place.

  3. Wow, as he had also stated in the New Statesman interview, his plan B was to have the government take over the Bank of Greece and counterfeit euros, and then claim a unilateral ‘haircut’ with the ECB.

    That would also fit with his other stated views in a 2013 lecture where he sees all wealth production (goods) are community owned and thus should be shared equally (the Marxist in him). Because printing ‘counterfeit’ euros for the Greek Gov would merely enable that world view across the EU, then for him the euros would thus not be counterfeit.

    He will never believe he was responsible for destroying billions in Greek wealth production. What a lunatic.

  4. Plan be made more sense than Tsipras all out capitulation. Varoufakis knows that he is right, his approach was right and given few more days or weeks he would have succeeded in getting EU to come up with compromise but opposition wanted more free cash and Tsipras got scared for his own position. When there is to many captains on the ship ship sinks. In my opinion Varoufakis would have been a better captain in the situation.

  5. you don’t push the button in july and then start the plan. you should have started in January especially if you are threatening GREXIT. Varoufakis himself admitted it takes a while to go into a new currency (one of his recent pieces used Iraq as an example)

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