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. You fail to understand:
    Schäuble does not want an agreement. He wants Greece out of the Euro to put pressure on France.
    He deliberately destroys an entire economy for his schemes.
    And some here even applaud to that. Shame on you!

  2. Ah, and Schäuble is not corrupt? He has not taken illegal donations from dubious weapons manufacturers? Oh no!
    Of course Schäuble understand way more about economy than a renowned professor of mathematics, statistics and economy that is in perfect agreement with all leading economists of the world!

  3. certainly here my friends and neighbours acknowledge many of the problems Greece faces. What we need is time and space and support to tackle the corruption, tax evasion etc. If people like Schauble won’t give us the time and space, then inevitably people will suspect their motives.

  4. Either you have no comprehension on the politics in Greece or you just read the UK tabloids. Go and work in Greece and then comment and please add evidence to your claim that half of Greeks are “far leftist extremists”.

  5. No they happened because they didnt work they caused more problems and ask anyone in spain and portugal they will say the same you suffer from confirmation bias from newspapers.

  6. ” i am sick of the leftist lies” as dp i but i am also seek of troika lies, go ask the people there and what they think, you will get that they havent solved any problems, spain might look better but portugal isnt.

    Greece didnt end up like this because of the leftists but the right which are the ones who caused all the cartels and tax evasion and wasting programs.

  7. wow you are clearly braindamaged and thumb up your own posts.
    This will solve nothing, let me point out a bunch of facts.

    germany debt is 222% of gdp, and you thought only greece doesnt follow the rules and cook numbers. From 2001-2010 greece bought most of the arms from germany and germany, france, ireland, holland and USA made alot of money from the greek crisis.

    Long story short, you owe money that is your problem, you owe a lot of money that is the problem of those who lend you, YOUR problem pal, so go ahead and cut off greece you not gonna get your money back so the debt wont be relieved it will be erased.

    Germany is lossing power for what they did.

  8. Full agreement? dear god dont you read the news? Continue be foolish i am gonan repost these

    germany debt is 222% of gdp, and you thought only greece doesnt follow the rules and cook numbers. From 2001-2010 greece bought most of the arms from germany and germany, france, ireland, holland and USA made alot of money from the greek crisis.

    Also gonna keep reposting that the austerity doesnt work and finally keep reminding you that germany is afraid that it will isolated for what the did to greece.

  9. No argument apart form the fact they voted him because they couldnt take anymore and according to statistics they will STILL vote for him in the next elections.

    Finally, they are going after tax evasion and lowering the wages of the high paid officials, seems to me they are the ones who will fix the corrupted system in greece.

  10. Germany? no the whole EU and Germany holds the most power in Eu by their own design? Everyone in Eu is reallizing how much power germany is gaining by changing rules.

    They are becoming isolated.

  11. I think Germans are to Gay to fight any war but I think it is a good idea for them to try because they will get slapped around like in WW2

  12. If You Quote Chris Kristoffesen it already shows what a Twot you are go ply with your dinky toys

  13. What about him sending his daughter to Australia shows you how much confidence he has in Greece

  14. I agree. I’m italian. Italiy we are so bored With Germany. We are aware That euro Was a Good Deal Just for Germany which needed a Money increasing Its competitivity. Italyo based on manifatture, Was destroyed by euro and by spread. Youth unemployment Tax reached, last mon th , 44%. In Italia we Don’t suffer Germany any more, Its speculation against the other states and Its Will To dominate and Its moralism. We Don’t needed To be ruled by German. Germany seems a moralistic teacher, But we aren’t little students.

  15. Yes this is true, he put forward a very simple plan to end the grief the country is being put through by Germany, they seem to be at the helm here, which was rejected purely because it was workable and the EU or EZ simply could not allow anyone else to have an idea that may work and may show them up for what they are

  16. I think, if u educate yourself a bit more, you will discover that Greece had posted growth too. What the gov wanted was to keep a % of their growth to continue to grow the economy, but that is not in the interests of the banks, the banks get most of the bail out package, very little will trickle down into the economy to help the HUMAN BEINGS who are suffering under interest payments the lenders are now receiving. The EU etc have completely sidelined the principal of why there is an EZ, the people. This has been purely an exercise on dictatorship. Remember the golden rule……do not get into more debt to pay off your debts, yet this is exactly what has been FORCED upon the people, and not by the gov they voted in.

  17. I am an economist. I’m working bloody hard managing my company. You should read how Greece and Greeks are portrayed in international press.
    Varoufakis is correct. But he offers no solution. He asks for gratitude, handouts. When you rely on others for your salvation you lose bargaining power .

  18. My point is why do we need the Europeans managing anything. That is because our government are just incompetent fools that offer no solutions and take no ownership of Greeces problems. Whether a mistake entering the euro or not Greece acted like a child ravenously taking all the money given and getting into significant debt.
    Greece can default, if that’s what is needed …..then do it. Greece can reform and collect the taxes due .. Then do it. Thus far the only proposals are forms of begging. Begging for better loans, begging for more money, begging for cuts to the loans. Where is self respect.

  19. Varoufakis is correct! But theories don’t work in the real world. In the real world no lender is going to halve your debt and let you continue living the way you were. I was just pointing out the error in why elections hapoened and he needs to take ownership and govern.

  20. I agree – if you ask the Germans for a solution you get something that suits them. Where is Greeces solution? They are incompetent (past and present) governments and offer nothing other than begging to the germans

  21. Growth is a figment of your imagination and naivity. Governments in power skew statistical messages all the time to fool the gullible such as yourself.
    Heading into an election where an anti-establishment party (Syriza) had a chance to win the statistics in Greece showed miniscule growth (false) in the Greek economy so as to fool the citizens into not electing Syriza. When that failed the EU took it upon itself to sabotage Syriza so as to ensure that power remains with the Right Tards. The unfortunate part is that the biggest pain will be felt on whatever middle class that Greece has left. Capital controls are a disaster for the Greek economy.

    Also I would like to ask the right tards on this board….How good an economic system is one that is so intertwined with such things as consumer confidence or investor confidence or whatever confidence. This system based on growth through leveraged debt is a house of cards that will eventually fail miserably and absolutely.
    Only a carefully regulated economy that accounts for the good of the many can succeed in the long run.

  22. What does that him sending his daughter to school in Australia have to do with anything? Why dont you look to see where your right tards educate theirs and comment on that.


  24. Cite your sources. What statistics got worse, and how much? Anecdotal evidence is not evidence.

  25. I already have. I just object to those same masses blaming other masses for their own mistakes.

  26. Every country is counting the unemployed who are not looking for work. They are the ones competing for jobs and drive the wages up or down.
    Can you cite any evidence the Spanish economy is not growing? I’d be curious to see the unemployment counting discouraged workers, too, if you can find the numbers from a credible source.

  27. Please cite the sources for the 222% of GDP German debt.
    As for the purchases, a country is responsible for its own purchases. And for its own economy, even if it tries to blame someone else.

  28. I don’t know ? I wish I knew. I hope the Greek govenment who are paid the big bucks work a solution rather than a path of corruption filling their own Pockets with euros while the people suffer.

  29. your very narrow minded thats what people and the media want you to think, the amount of countries that are benefiting from Greeces down turn is crazy, furthermore why carry on giving a country money which you know it will never be able to pay back? seems a bit odd

  30. will see what will happen to spain, and if Mr varoufakis is correct you should delete all your posts

  31. I believe giving greece money with any bailout conditions will result in
    zero to negative growth as long as Syriza and Tsipras are in power as i
    believe Tsipras is in fact a retard – his posturing during the
    negotiations and coming to meetings totally unprepared with no proposals as well as his inability to manage public funds leads me to believe he is a spastic. The economy will NEVER grow as long as we have a retard in power, he will never follow the mandate and will waste public funds – i can guarantee it. Someone needs to interview his parents – i believe they will confirm he is a spastic

  32. Actually varoufakis spoke to german entrepreneurs with ideas but they dont want to listen. The solution is investments in the whole of europe, germany gets to make more money, the poor countries get to live better. But they dont do it because that will break the balance between rich and poor, germany is split in two, even after all those years STILL there is a huge diffirence. The reallity is this is not the germans vs everyone else it is the rich vs the poor who dont want the balance to change. Initially when the eurozone started everyone was fine.

    They dont want that, they want to maintain the low costs for hiring workers and continue experiencing low taxing.

    You wont get a defend of the useless greek goverment from me, they got greece into this mess, but syriza while inexperienced and idiotic, atleast tried to do things different. But it was reveled that everything must be done in a specific way, there are no alternatives, there is no democracy or choice.

    It was decided that everything will work in a specific way and no one was asked about it, just like no one was asked about joining the EU. In reallity the people have zero control.

  33. If Greece can’t pay its debts now how it it going to pay with another 80 or so billion added to the tab. Common sense.

  34. “Greek economy grew right until the elections.”

    it fell 25% from 2009-2014 and grew a mere .7%, based on fake statistics none the less. that’s like being excited about your stock dropping from 100 to 75 then going up to 75.53

  35. “it wasn’t this bad before Tsipras ”

    oh really? how about the below stats from the Samaras regime.

    27% unemployment
    1.2 mln lost jobs
    60% youth unemployment
    30% businesses closed
    40% drop in salaries
    50% cut in defense spending leaving our coastal borders vulnerable
    400% increase in uninsured Greeks to 2.5 mln
    30% drop in health care spending
    100% increase in poverty
    50% increase in suicides
    41% of all children in poverty
    250% increase in households without electricity
    35 bln in social security losses
    250k young scientists leaving Greece
    30% fall in GDP
    75% increase in debt to gdp.

    If Tsipras hasn’t sold out yet he is dangerously close to doing so but faced with the prospect of the ECB destroying your banking system, you wouldn’t have even put up a fight and you would have folded on day 1, like the ND/PASOK government did. At least tsipras/varoufakis fought (and lost for now) Varoufakis fatal flaw was that he didn’t have a backup plan ready to go. Default and Grexit will be painful, but much better than the slow motion train wreck since 2009

    this is far from over

    Spain also isn’t Greece. one suffered from a real estate bubble the other from a government debt bubble created by YOUR New Democracy and Pasok

  36. you blame germany for illegal immigration? how about when it rains, is germany responsible for that?

  37. not sure where you got 222% public debt for germany – tradingeconomics quotes it as 74.7% as reported by eurostat – in fact since 1995 its never been as high as 222%

  38. you do not respond to the FACT THAT TSIPRAS LIED!!!!!!!!!!!!! why do you ignore that tsipras lied????????? and despite all the issues you have listed, he is building a mosque in athens with public funds and providing illegal muslim immigrants with housing

  39. Being stable is a great improvement from being falling, and falling is much worse than being stable – for both stocks and the economy. The previous Greek government turned a collapse into stable (and very slowly growing) economy. The current one took a stable economy and turned it to ruin.
    By the way, I am recently reading that 2015 Q2 Greece has recorded economic growth… not through manufacturing, services, tourism or anything of the sort, but through car sales. People were so afraid the government would convert their savings into worthless new currency that they were buying cars that won’t depreciate as fast. If you think this means the Greek economy is doing well under the new government, well, there is nothing I can do about it.

  40. he is about to sell out, assuming this isn’t a plan to get through the busy summer tourist season and give Greece some breathing room. I have said that repeatedly. this isn’t the first time in hundreds of years of fighting against the invaders that Greeks retreated only to regather (again assuming that’s what’s happening)

    are there public funds involved? i am not sure of that and if there are I don’t approve. No one is providing illegals with housing. And to that point, where else are they to be put until they get their papers and/or are deported. Detention centers are still housing. And putting these war refugrees in abandoned buildings that are not being used is better than having them all outside.

    again learn how to read