Varoufakis Reveals Deals He Proposed to Greece’s Creditors

Varoufakis_Supreme CourtFormer Greek Finance Minister Yanis Varoufakis published on Thursday two proposals he claims to have made to Greece’s international creditors in May and June.

Varoufakis, who resigned from his post on July 6, claims that both proposals, one of which was submitted on May 11 and the other on June 11, were ignored by his Eurogroup counterparts. The documents include suggestions for financial policies and reforms in Greece.

In his blog post, the SYRIZA MP accuses Eurogroup and troika members of lying when they claimed that “they did not know what the Greek government was proposing.”

“The truth is that they knew perfectly well what we were proposing. And that they never paid any attention to our proposals. Was that because our proposals were worthless, as they kept “leaking” to the press? Or was it because our proposals’ substance made it hard for them to admit that the real reason they refused to engage with our sensible, sophisticated proposals was that they only cared about humiliating our government and derailing the negotiations? I let the readers decide which of the two explanation is more believable,” the former finance minister writes.

Varoufakis has attached both of these alleged proposals in his blog post.


  1. Omg I’ve just lost an hour of my life that I can’t get back reading a bunch of motherhood statements he calls proposals. Hey varoufakis they think you are a joke because this was not a proposal but rather a lecture with no solutions only hope. There was no breakdown on funding for the proposal other than “if we spend more the economy will spend more and it will grow”. Have you not noticed that the government has no money to spend, the lenders want proposals who show how you will get the money that is legally owed to Greece. Once you have this then you can.

    For those not wishing to waste their lives reading this thesis, it contains statements like; . Accurate and effective administration of land taxation remains a work in progress, as does fully effective income reporting. However, improvements can be made on a host of particular measures, each of which will yield additional resources for the Greek state. In particular, major inequities in tax administration can be cured by reducing informal labor, increasing the scope of social security contributions, and promoting electronic transactions that can be effectively monitored for VAT compliance. Decreasing VAT evasion can in turn make it possible to reduce the VAT rate on compliant transactions.

  2. What we all agree on is Greece’s debt is unsustainable…
    Politicians pay not tax, Farmers were exempt and ship owners pay no tax so who does pay???
    Greeks from abroad who have a holiday house and employees.
    We really need some solutions and reforms urgently..

  3. If you tax a farmer he has no option but to pass the expense on to you the consumer the same is true for shipping firms and transportation in general. The big difference is a shipping company can easily relocate its operations outside the country and reflag their ships. Competition in shipping is stiff especially from Asia. Greek ship owners have been one of very few businesses that employ thousands of Greeks and remain marginally profitable. Tax them and watch their offices close and employees become unemployed.

  4. We have had the debate on shipping which I concede you have a point. But the problem with farmers n lead to understand is the definition of a farmer is too broad leading to too many people paying no or little tax. Does having an acre of land in a village with some olive trees on it make you a farmer. I don’t know any Greek who can’t claim a block somewhere so therfore no one pays tax.

  5. Indeed the devil is in the details. A Stremma 1,000 square meters of land in Greece in one location and worked year round can be much more productive than other places of much larger area. A minimum land area will be needed to categorize a plot as a farm. But receipts will also be needed as proof the land is being commercially worked. Then we have the issue of proof in determining if plot is used for subsistence farming for oneself and family. Bottom-line taxing qualified farmers will mean higher prices at the market. I learned never to complain about farmers while my mouth is full.

  6. Thanks for the explanation. The memorandum says tighten the definition of farmers not tax them. That does require a competent government. …. This has been the problem all along though…… We will see