Varoufakis: Spain is Next to Drown in Debt After Greece

varoufakis-800x450Greece’s former finance minister Yanis Varoufakis said that the third bailout creditors offered was really meant to drown Greece in debt in order to divert attention from other EU problems.

Varoufakis spoke to Spain‘s El Pais and claimed that the reforms imposed on Athens by the European commission, the European Central Bank and the International Monetary Fund are “going to fail.”

“The third package will not work because it was initially designed to divert attention from the problems other EU countries are facing, not to save Greece. To lend it money only to drown it in debt… The German Finance Minister Wolfgang Schaeuble wants to reconstruct the Eurozone, and pushing Greece out is only part of this plan,” Varoufakis said.

“The main goal is to deprive the European Commission of its right to handle budgetary issues and set up some observatory fiscal body that would force EU states to draw up their budgets the way the troika deems right… He wants the troika to dictate its terms where it has not been invited yet: in Madrid, Rome and above all in Paris. Greece is just a pawn on their chessboard,” the ex-minister added.


  1. Because it is not added to the tab. That’s what I wrote and you ignored. A large part of it is being used to pay the previous debt, so the total debt is NOT increased by 80 billion.
    The rest of the sum is used to prop up stability and growth. If you have growth you can pay the debt, if you don’t have growth you can’t. Everyone knows that. The big argument between EU and Greece is that Greece wants to get money and use them to prop growth without strings attached, and the EU claims Greece will get in the same situation if they don;t change, so the EU is asking for reforms in order to give the cash.

  2. I don’t give much support for a government that caused the freefall then “stablized” (and i used that term very loosely) and I am referencing the ND/PASOK governments of 2009-2014 which did cause this mess and make it worse. This isn’t a support of the current government which is engaging in the same can kicking that the previous one did, but seems to me they are starting to clean up shop internally (going after corruption, tax evaders, etc) eventhough they are voting again the give up our sovereignty

    Putting up a fight is admirable. Greece was not stable through hundreds of years of revolution and resistance, but the end result ie our freedom and autonomy was of course worth it.

    The Q2 growth isn’t much to be happy about as you alluded to. It was also helped by strong foreign tourism.

    Until we take control of our own destiny, we will continue with the slow motion train wreck

  3. That it;s being used to pay previous debt doesn’t mean it isn’t being added to Greece’s current debt load . Other than the one time debt relief a few years ago (a haircut from private creditors) the “bailouts” are loans.. but loans will never be paid back in full.

  4. Greece has far more debt per person to service on GDP/capita basis than Spain. This is why debt relief is enviable. They’ll just try to call it something else to make it appear like they didn’t write off debt. (extended payment dates, further reduced interest, etc..)