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. Talk is cheap. What is the solution without begging for European money? Without begging for European help for managing illegal immigrants and other matters?

  2. EU is falling because of what happened in Greece when money limits were put to destroy Greek democracy and free choice. Spain,Italy,Portugal etc etc are next after this sumer

  3. another deluded leftist in Varoufakis…. Spain has posted growth for the last few quarters, unemployment is falling and podemos has sunk in the polls there. Given the fiasco and mismanagement from syriza, podemos have moved to distance themselves from any association with syriza, they have publicly stated so. Spain’s current government is centre right and ahead in the polls for a reason

  4. He is pathetic. He has failed in Greece, and now he wants Spain to be a disaster so that he can say it wasn’t his fault…

  5. A true sour grape. The european bailouts worked in Spain, Portugal, Ireland and stabilized Italy. Greek economy grew right until the elections. Then his confrontational attitude led to uncertainty, which killed the Greek economic recovery. Now he’s trying to export the crisis, so people won’t blame him for it.

  6. i think you will find Spain’s economy is actually growing. This hope by leftists for more misery to get into power is becoming tiresome and is quite disgusting in my opinion, Syriza or more specifically Tsipras fed off people’s misery with populist proposals that they could not deliver then blame everyone else when things gets worse. … you do realize greece was actually posting GDP growth before syriza came to power? I’ll save your comment and refer back to it at the end of the year… the only nation there that you have listed that is in danger is the one with a leftist agenda of mismanagement ie matteo renzi’s italy where he just awarded more tax cuts putting them in deeper debt. Leftists such as Renzi are just complete morons when it comes to running an economy, Tsipras is evidence of this,. For the left, everything is a rich vs poor thing, they love feeding of this victim hood mentality

  7. The bailout is doomed to failure. This is common sense. Greece can’t pay back its current debts much less another 100 billion more in debt. Unfortunately Marxist Voroufakis lives in an alternate reality were communists won the cold war. By self-righteously and shamelessly demanding a roll back in cuts, on the backs of EU taxpayers, Syriza and their supporters ended up alienating the entire EU. Nearly half the Greece’s population are far leftist extremists and that’s Greece’s single biggest problem. Too many shameless whiners for handouts and not enough producers.

  8. Hi Zante,valakos,Kiriako and Zalacain
    Can you tell us where in Greece you are living and what is your net income per month? It would help us understand your point of view better.

  9. what is the solution without austerity that fails. germany wanting to control europe with a common goverment and military, a common currency that has failed and immigration they cant control?

  10. growth my arse it is you who are deluded, go ask someone in spain how things are go ask portugal, greece also posted growth last year and guess what? Nothing happened, unemployment is not falling at all. That is just summer jobs.

  11. yeah it happens in potrgual as well but ofcourse this is just greece spain italy nope dont look there, seems to me he is right, this whole think happens so you can point at greece and ignore the problems, just wait.

  12. How on earth they “worked” when they got the same problems? Did it occur to you the reason the elections happened was because the “sucess story” was a lie?

  13. Varoufakis exalts all these surrealistic Marxist conspiracy theories while sunbathing on the balcony of his wife’s luxury villa in Aegina. I dig his shirt though, I have the exactly the same colour and design in plastic on my kitchen dining table.

  14. When you don’t agree with the facts, deny the facts, that way you can believe whatever you want. It is you who lives in a bubble of illusion.

  15. Spain grew 1.4% last year and will grow at 3.3% this year. Over 500,000 jobs have been created over the last 12 months. I know that you don’t like it, but this is real. At some point, instead of shooting the messenger you might have to admit to being wrong. (And of having no ability to write correctly)

  16. My point is offer an alternative. He is paid the big bucks not just to rant he should offer a solution And stop begging to the eu when things get tough. Stop asking Germany for money provide some solutions. This empowers them.

  17. The elections happened because the presidency vote failed in parliament. The lie came from tsipras saying ” vote for me I will end austerity” he was voted in by promising paradise only to find he had no ability or skills to do so. He wasted 6 months damaging the country throwing it into further into oblivion.

  18. I dont live in Greece but fear for Greece. I left to have stability abroad. I’m embarrassed by the actions of my nation, the lack or order the lack of fairness, the corruption. The fact that the corrupt interest of few place the entire community on their knees begging for money. Rather than saying that past governments have made mistakes and offer solutions they spend more time throwing mud at at other people and create hysteria by blaming others. I see how other countries run, I have seen how Greeks overseas laugh at us. I work very hard and pay lots of taxes but I enjoy stable government, clean roads clean air and trees in clean parks.
    All I ask stop complaining offer a solution.

  19. Hey Zante….wake the hell up: I don’t see the idilts from Europe “managing” the Greek bailout or the illegal migrant issues very well |

  20. Varoufakis, as usual, is right. And just watch Spain become a bigger radioactive explosion to the EuroGroup. Its a bloody PONZI SCHEME devised by bankers interested in turning us all into DEBT SLAVES.

  21. WRONG | Spain’s economy looks like it is growing because people are living in MISERY and they are asking for less from their govern!ent. ALSO, their statistics are not counting the unemployed who have STOPPED LOOKING FOR WORK.

  22. If the Roman Empire had remained intact there sure would have been a whole lot fewer problems with violence and wars over the past 2000 years. The Greeks are a very rude and bellicose people and that has been very clear over the past 200 years during which they have rarely stopped fighting for one bizarre reason or another.

    The Romans instantly recognized that the entire concept of “democracy” was EXTREMELY STUPID and was WHAT CAUSED THE COLLAPSE OF GREECE enabling the Romans to take over Greece and finally makes the Greeks useful for something as slaves to the Romans in the Roman Empire.

    Freedom and liberty are just EMPTY VACUOUS WORDS of no meaning at all, and anyone who uses them is highly suspect. Freedom, as Kris Kristofferson said, is JUST A WORD FOR NOTHING LEFT TO LOSE.

    There is no such thing as “independence” and anyone who thinks so in today’s globally interconnected economic and social and political world is just plain EXTREMELY IGNORANT AND UTTERLY STUPID.

  23. Why blame Germany when all of the other 18 countries of the EZ are in full agreement with the approach that Germany advocates?

  24. Yes, Spain is doing just fine and Variousfakeit is again out of his mind and trying to distract attention from the problems of Greece itself.

  25. Well, Greece isn’t going to get a single penny of “debt relief” and need to be charged DEFAULT PENALTY INTEREST RATES on the debt that it owes and needs to be cut off from getting a single penny of any further funding because it is a DEADBEAT DEBTOR.

    As to recession, Greece is already in a depression and that needs to worsen substantially to clear out the dead wood in Greece.

  26. This book says nothing but “political solution” when the entire problem with Greece is its totally screwed up economy and profligate spending of other people’s money and now there is no other people’s money to spend.

  27. Yes, Variousfakeit is a total moronic clueless imbecile who was the direct cause of the collapse of the Greek bailout plan this year.

  28. The IMF will not back the latest proposed bailout and Germany cannot and will not restructure any Greek debt so it looks like the bailout discussions are going nowhere. Meanwhile, Angie is having a delightful vacation in Italy and says the best approach is thorough discussions with no rush as to time at all so perhaps by the year 2020 or 2030 there will be a little movement in discussions over what to do about Greece!

  29. The only real way for Germany to make Greece just like Germany is for Germany to rolls tanks and rail cars into Greece and round up the 11 million people there and then ship them via rail to gulags in Siberia under contract with Russia and then repopulate the land that is Greece with about 11 million German citizens. The economic problems would instantly vanish and Greece would become Germany By The Sea and live happily ever after!

  30. Varoufakis? *You* are the one who is trying to divert attention from your spectacular fall with more BS like the one we got used to. You are everything that I abhor in today’s Greeks and it’s too bad there are still people out there who are willing to listen to you and who take you seriously. Let’s see… you are a conspiracy theorist, you are a doomsday deceiver, an attention seeker, a liar, you are corrupt, untrustworthy, uncooperative and you think you are special. Well, I guess you are, in a unique way. Turn right on Humility Lane because you need a vacation but not as much as we do.

  31. yes it was!!!… there was growth in the quarter prior to the election and unemployment was coming down

  32. look here mate, from reuters …Spain’s economy motors on at fastest pace since before financial crisis,,,, GDP grows 1 pct in Q2, fastest quarterly rate since 2007…..Thursday’s data showing a quarterly growth rate of 1 percent.”We are now able to return to pre-crisis income levels.” I’m sick of leftist lies, now look at what leftists have done to greece!!!

  33. very true… after spain posted growth and the fiasco in greece, podemos dropped like a rock in the polls to about 15% from 24% – spanish are realizing leftists like podemos and syriza are complete morons. In fact the podemos leader is trying hard to distance themselves from greece whereas before they were in solidarity.

  34. No, the austerity programmes in the other countries are all failures — disasters. Greece happens to be the biggest disaster. I see that your name is not Spanish, Italian, Portuguese, Greek, etc… I presume this means that you do not actually live in one of thsoe countries. Obviously you are not an economist. So do explain to us, to economists and residents of the south, exactly where your information is coming from. And where you live.

  35. These policies are working in Spain, Portugal and Ireland because they are slowly solving the problems. The economies are growing, unemployment is decreasing, the markets are stable, the banks are open.
    The last Greek elections result (as well as the referendum) is because the people believed some populists claiming there is an easy way out.

  36. The best solution is to end the euro zone. Short of that, the rich areas must donate 5% of tax revenue to the poor areas (like other unions such as the USA, Australia, Canada etc )

  37. The Greek economy didn’t grow. It just didn’t shrink as fast as deflation, making some statistics look semi ok. But it wasn’t.

  38. This bailout is not doomed, at least not because of the reasons you state.
    The most often used Greek defenses ‘it all went/will go to the banks and lenders’ and “we have this much debt, we can’t pay 100 Bn more” are incompatible. The new debt is used to pay for the old debt, it is not just added to the old debt.
    The only reason for the debt to grow is interest and fiscal deficit. This is the reason why the EU gave Greece such low interest loans – Greek debt has less interest (as % of GDP) than the far less risky and lower Spanish debt. And this is the reason the EU wants a fiscal surplus when debt is excluded. An even small fiscal surplus is enough to make the debt sustainable.
    The only reason the bailout may be doomed to failure is if people like Voroufakis manage to convince the country it’s not going to work so why bother trying, working and paying taxes if it will all be in vain.

  39. Google “Varoufakis modest proposal”
    He had a sustainable plan for the Eurozone completely worked out. But Parteispenden-Schäuble doesn’t want to listen.
    Btw. Schäuble has also been head of the East-German-Rebuild-Fund.
    Another project of his that has failed tremendously. And has cost the German taxpayer 1 Trillion(!) Euro in 25 years.

  40. Well, you may deem yourself smarter than Varoufakis, but you have a phalanx of the world’s top economists, including many nobel price winners agreeing with Varoufakis instead you.

    Think about it.

  41. I conclude:
    – You are sitting comfortably on your couch in some rich country
    – You are not an economist, nor do you read comments from leading economists
    – You did not inform yourself properly about Parteispenden-Schäuble, his gigantic failure in Eastern Germany or the social degradation of Germany, the price German taxpayers have to pay for his “Exportweltmeister”-illusion of grandeur, and his plan to blame the Greeks with blatant lies we hear from him and his party in German news daily.

    Bottom line:
    Your opinion is moot.

  42. Have you even listened to one of his lectures?
    Or a discussion with Joseph Stiglitz?
    Do you even know who that is?

    Didn’t think so.