Yanis Varoufakis

My question to Christine Lagarde, Eurogroup 25th June 2015

Off the keyboard of Yanis Varoufakis

Follow us on Twitter @doomstead666
Friend us on Facebook

Published on Yanis Varoufakis Blog on August 17, 2015

Visit the COLLAPSE.GLOBAL Portal for Links & Daily Updates from around the Collapse Blogosphere

Euro_collapse

Discuss this article at the Economics Table inside the Diner

Greece’s Third MoU (Memorandum of Understading) annotated by Yanis Varoufakis

The Third Greek MoU is now enshrined in Greek Law. Written in troika-speak it is almost impossible to decypher by those not speaking this unappetising language. Click here for the complete MoU text annotated liberally by yours truly – in pdf form. It is best read in conjunction with my annotated version of the EuroSummit Agreement of 12th July.

My question to Christine Lagarde, Eurogroup 25th June 2015 – as narrated by Landon Thomas in the NYT

yanis-varoufakisDuring the 25th June 2015 Eurogroup, the institutions presented me, in the form of an effective utlimatum, with a comprehensive staff level agreement and funding plan (which I considered financially non-viable). It was the deal that Prime Minister Tsipras decided, on the following day, to put to the Greek people in the form of the now infamous referendum. During that Eurogroup meeting, I posed a question to Christine Lagarde: “Is it the view of the IMF that Greece’s debt is sustainable under the proposed agreement?” Ms Lagarde, when her turn came to speak, tried to skrt the issue but, in the end, conceded that Greece’s public debt “had to be looked at again”. At that point, the Eurogroup President Dijsselbloem interrupted the proceedings and addressed me with the express threat that, if the Greek government insisted on discussing a debt restructure, there would be no deal. I shall have a lot more to say on this and related matters in due course. For now, here is how Landon Thomas Jr narrates this story in his recent NYT piece.

 

For Landon’s complete article click here. Relevant extracts are copied below

In January of this year, the anti-austerity party of Alexis Tspiras came to power. By April, negotiations over debt repayment had stalled, the government was hemorrhaging cash, and the economy was at a standstill.

On Easter Sunday, Yanis Varoufakis, who had become Greece’s finance minister, flew to Washington to meet with Mr. Thomsen and Christine Lagarde, who became the I.M.F.’s chief in late 2013, and threatened to stop payment on more than a billion dollars in loans that were soon coming due.

Relations between fund officials and the Greeks had reached their nadir. Mr. Tsipras said that the fund had “criminal responsibility” for the crisis, and Mr. Varoufakis was telling people that Mr. Thomsen’s work in Greece would go down in history as the I.M.F.’s greatest failure.

Yet having run the numbers, the fund now accepted the central argument being made by Mr. Varoufakis: Greece was bankrupt and needed debt relief from Europe to survive.

The fund was also feeling the pressure from the non-European members of its board who questioned the huge commitment to Greece (currently about $15 billion) relative to the small size of its economy.

Ms. Lagarde and David Lipton, her top deputy, became more insistent, pressing European nations that economic reforms alone were not enough and that a debt restructuring would be needed as well.

In late April, Mr. Thomsen took up the issue once more at a critical meeting of European finance ministers in Riga, Latvia.

Two months later, Ms. Lagarde found herself at the Brussels meeting of European finance ministers, with the country’s future in the eurozone hanging in the balance.

The Europeans were pressuring Mr. Varoufakis to agree to an austerity-loaded debt deal that he was resisting.

I have a question for Christine, he said. Can the I.M.F. formally state in this meeting that this proposal we are being asked to sign will make the Greek debt sustainable?

She could not. And when Jeroen Dijsselbloem, the Dutch finance minister and lead negotiator for Europe, cut off all discussion of debt relief, the die was cast.

Back at I.M.F. headquarters in Washington, the decision was unanimous: It would go public with its assessment that Greece’s debt situation was hopeless.

‘Old Wine in a New Bottle’

The 19 countries of the euro area make up the I.M.F.’s largest shareholder base, but as the world’s financial watchdog, the fund also represents 169 other nations.

If the I.M.F. wants to be seen as an international, as opposed to a European, monetary fund, it must prove that it can speak with an independent voice. And if that means arguing that Europe, its senior partner in these talks, needs to take a loss on its loans — well, so be it.

Many have commended the fund for going public with its views. But the release of its debt reports has not yet had any practical effect.

The latest bailout is heavy on austerity measures like privatization of power companies and seaports, reduced pensions and tax increases in shipping and tourism, and says nothing about debt relief.

“This is old wine in a new bottle,” said Meghan E. Greene, chief economist at Manulife in Boston. “I see very little chance that the bailout will succeed — it’s too much like the other ones.”

Would it have made a difference if the fund had officially broken with Europe in the spring, when it began to conclude that the Greek debt had become unmanageable?

Probably not, says Susan Schadler, a former I.M.F. economist and author of a widely read paper on the fund’s Greece saga.

But she argues that by not forcing creditors to take a loss back in 2010, the pain has been borne almost exclusively by the Greeks themselves, and not by bond investors.

“The fund should have pushed for a restructuring then,” she said. “That, after all, is its job — to assess the risks and say whether or not the debt is sustainable.”

Greek Debt Chicken Game

logopodcastOff the microphone of RE

Follow us on Twitter @doomstead666
Friend us on Facebook

Aired on the Doomstead Diner on February 6. 2015

playing-chicken1

Discuss this Rant at the Podcast Table inside the Diner

Diner Special Lunch Menu

Souvlaki                  or                    Strudle

http://d.ibtimes.co.uk/en/full/1422542/greece-yanis-varoufakis-says-ecb-talks-fruitful.jpghttp://i57.tinypic.com/2z57qtl.jpg

Snippet:

…Once again, the Greeks have taken the Center Stage in the Collapse Kabuki theater, with the newly elected Syriza Goobermint under the leadership of Alex Tspiras attempting to follow through on their many promises to throw off the Debt Choke Hold held on them by the Brussel Sprouts.

The new “Rock Star” player in the game here is the new Greek FinMin, Yanis “Souvlakis” Varoufakis. Yanis is making a lot of headlines in the Econ blogosphere since Syriza took power, first with the threat to outright default and lately with some more creative phrasing of concotions like “perpetual bonds” in some kind of new game of debt musical chairs.

On the other side of this nonsense is Yanis’ Evil Twin, the Kraut FinMin Wolfgang “Strudle” Schauble. Wolfy won’t take any shit from Yanis, and has made it clear he thinks the Greeks are responsible for every penny of the debt that the ECB and by extension the Kraut population extended to the Greeks, despite of course the reality that the Krauts never had the money before the last Greek Goobermint of Bankster Sock Puppets signed for it…

For the rest, LISTEN TO THE RANT!!!

Who CHICKENS OUT first?

Rotisserie_Chicken

Prior Rants on the Greek Debt Kabuki Theater you may have missed:

Knarf plays the Doomer Blues

https://image.freepik.com/free-icon/musical-notes-symbols_318-29778.jpg

Support the Diner

Search the Diner

Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D

Archives

Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

Quote from: RE on March 27, 2020, 03:45:41 PMQuote from: K-Dog on March 27, 2020, 01:09:59 PMQuote from: JRM on March 27, 2020, 12:43:21 PMLet's not call it conservativism or the s...

balsonaro & trump, sittin' in a tree, k i s s i n g. https://www.msn.com/en-sg/news/world/bolsonaros-anti-science...

Quote from: monsta666 on March 27, 2020, 04:24:41 PMQuote from: RE on March 27, 2020, 04:21:14 PMJ6P only grasps the raw numbers, and once it passes 5 Zeros he's lost.J6P will also notice if t...

https://nypost.com/video/new-yorker-singing-out-window-told-to-shut-the-f-up/

Recent Facebook Posts

No recent Facebook posts to show

Diner Twitter feed

Diner Newz Feeds

  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

Rob Zombie for prez. Hell ya [...]

Quote from: K-Dog on Today at 01:09:59 PMQuote fro [...]

Quote from: K-Dog on Today at 01:09:59 PMQuote fro [...]

Quote from: K-Dog on Today at 01:09:59 PMQuote fro [...]

Quote from: UnhingedBecauseLucid on March 18, 2019 [...]

CleanTechnicaSupport CleanTechnica’s work via dona [...]

QuoteThe FACT that the current incredibly STUPID e [...]

Quote from: K-Dog on February 24, 2020, 06:23:52 P [...]

I wonder how much these coins have been debased? [...]

Precious tip of the day.....Buy silver NOW  She [...]

Scientists have unlocked the power of gold atoms b [...]

Quote from: azozeo on August 14, 2019, 10:41:33 AM [...]

Quote from: Nearingsfault on March 27, 2020, 05:03 [...]

Quote from: RE on March 27, 2020, 04:47:17 AMLast [...]

Last time I checked just a couple of days ago, the [...]

Another Walmart Prep Run with ny newest Cripple He [...]

Glad you were able to get a few supplies. It' [...]

Alternate Perspectives

  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

Lies, Damn Lies and Coronavirus Statistics By Cognitive Dissonance     “Never believe anything in po [...]

The Decline and Fall of Civil Society Chapter One By Cognitive Dissonance     From my perspective at [...]

Missing In Action By Cognitive Dissonance     As a very young pup, whenever I was overdue and not ho [...]

Politicians’ Privilege By Cognitive Dissonance     Imagine for a moment you work for a small or medi [...]

Shaking the August Stick By Cognitive Dissonance     Sometime towards the end of the third or fourth [...]

Event Update For 2020-03-25http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2020-03-24http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2020-03-23http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2020-03-22http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2020-03-21http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

With fusion energy perpetually 20 years away we now also perpetually have [fill in the blank] years [...]

My mea culpa for having inadvertently neglected FF2F for so long, and an update on the upcoming post [...]

NYC plans to undertake the swindle of the civilisation by suing the companies that have enabled it t [...]

MbS, the personification of the age-old pre-revolutionary scenario in which an expiring regime attem [...]

Daily Doom Photo

man-watching-tv

Sustainability

  • Peak Surfer
  • SUN
  • Transition Voice

The Great Pause"While we can never fully go back, with enough people trying, something approaching normalcy wi [...]

We Need a Manhattan Project for the Climate"We could call the IPCC reports our modern Einstein letters. They are arriving to the Resolute [...]

Sorry, climate change is not about water"What can be effective is producing real-world changes in the short time remaining."We are [...]

Bernie Goes to Cuba: Regenerative Media"I am less disappointed in the news media these days than I am angry at it."after Raúl Cor [...]

Can An Ocean Get the Blues?"The decision by many nations and cities to push for carbon neutrality by 2050 or earlier will [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

What extinction crisis? Believe it or not, there are still climate science deniers out there. And th [...]

My new book, Abolish Oil Now, will talk about why the climate movement has failed and what we can do [...]

A new climate protest movement out of the UK has taken Europe by storm and made governments sit down [...]

The success of Apollo 11 flipped the American public from skeptics to fans. The climate movement nee [...]

Today's movement to abolish fossil fuels can learn from two different paths that the British an [...]

Top Commentariats

  • Our Finite World
  • Economic Undertow

perhaps to lighten things up with some fake news... https://www.worldometers.info/coronavirus/ Norwa [...]

In reply to Andre. well, her parents have used her as a prop to highlight what they have considered [...]

3,700 comments and counting... is this Peak OFW? it's been great... past Doomers are back, and [...]

In reply to Fast Eddy. "What cannot continue — will stop." or even better - That which is [...]

In reply to Dan Cantrall. What do you mean? The system has indeed already crashed. It is insolvent. [...]

China's confirmed cases have flattened since last week and remained that way. Is that because t [...]

The oil is $20+ dollars b/c nobody is buying it because everyone is inside, not driving, not using p [...]

Hi Steve, I read your blog for 7 years and I your posts always give me great intellectual pleasure o [...]

I think your conception that everyone is having sex with everyone else in America is describing anot [...]

It's nice to see a post up and yes we do need to take this seriously, but honestly I think it w [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction

Useful Links

Technical Journals

This study aimed to assess the interrelationship among extreme natural events and their impacts on e [...]

Rural livelihoods in most developing countries are threatened by climate-related risks such as droug [...]

The weather and climate conditions contributing to the energy and water availability during the suga [...]

A straightforward mechanism based on properties of the moist adiabat is proposed to construe the obs [...]

In the present study, the ability of the Advanced Weather Research and Forecasting numerical model ( [...]