Behind Germany’s refusal to grant Greece debt relief – Op-Ed in The Guardian

I am thoroughly disappointed with the Greek Government’s vote last night to effectively capitulate to the Troika, despite the momentum they won from the successful No vote last Sunday.

I am increasingly convinced by the argument of Costas Lapavistas that the only viable option left for Greece now is a default and departure from the Eurozone.

Here former Greek Finance Minister Yanis Varoufakis articulates some of the reality behind the Troika’s approach.

Yanis Varoufakis

Tomorrow’s EU Summit will seal Greece’s fate in the Eurozone. As these lines are being written, Euclid Tsakalotos, my great friend, comrade and successor as Greece’s Finance Ministry is heading for a Eurogroup meeting that will determine whether a last ditch agreement between Greece and our creditors is reached and whether this agreement contains the degree of debt relief that could render the Greek economy viable within the Euro Area. Euclid is taking with him a moderate, well-thought out debt restructuring plan that is undoubtedly in the interests both of Greece and its creditors. (Details of it I intend to publish here on Monday, once the dust has settled.) If these modest debt restructuring proposals are turned down, as the German finance minister has foreshadowed, Sunday’s EU Summit will be deciding between kicking Greece out of the Eurozone now or keeping it in for a little while longer, in a state of…

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One thought on “Behind Germany’s refusal to grant Greece debt relief – Op-Ed in The Guardian

  1. Well, we don’t know the details of Greece’s proposal, but I think we are safe to assume that as you say, they have capitulated and are offering something fairly close to what was rejected earlier.

    I was reading that Germany in particular, is letting it be known that a Grexit would be the preferred outcome. Playing politics of course, but maybe that is sufficient to bring about a change of approach.

    I am surprised to read Varoufakis’s words above that suggest Greece could be kicked out of the EU. I didn’t think a legal mechanism existed to enable that?

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