As so many have critiqued here: YV, the incapable (and unwilling) former finance minister is lecturing on how Greece was strangled. It's obscene what this self-styled biker and play theory academic wants the rest of the world to believe sitting in his penthouse and giving us a dose of Greek pride. Vanity, in vain.
2
As Varoufakis will admit, he is a Marxist (look it up if you don't believe me). This is exactly what he advocates for Greece. "From each according to his ability, to each according to his need." Greece needs a lot, but doesn't have the ability to pay for any of it. They have become complacent and feel entitled to the benefits of goods they did nothing to earn.
Good luck attracting investment into your country if this is what you base your economic system on.
Good luck attracting investment into your country if this is what you base your economic system on.
2
Somehow this is yesterdays news. Greece has had an election to stay in the Euro area or to leave. They chose to stay. to We all know the history that led to this situation. People make choices, states do too and they have live with those. So - do we need this whining?. Lets get on with the European project.
2
Couple of thoughts.
1. It took a CIVIL WAR in the U.S. to move the country from thinking of themselves as States first, country second, to country first and states second.
2. The states of Europe culturally speaking are FAR more different from each other than say Georgia is from Maine.
Countries exist because the PEOPLE in them have closely shared characteristics, goals, ideals, culture, etc. The U.S. is a bit of an oddball because of the massive amount of movement the citizens have done throughout the country. Also because the the U.S. embraces a "come all" ethos (for the most part).
Expecting Europe to become a "United States of Europe" does not make much sense, and practically speaking I don't see how it can work.
1. It took a CIVIL WAR in the U.S. to move the country from thinking of themselves as States first, country second, to country first and states second.
2. The states of Europe culturally speaking are FAR more different from each other than say Georgia is from Maine.
Countries exist because the PEOPLE in them have closely shared characteristics, goals, ideals, culture, etc. The U.S. is a bit of an oddball because of the massive amount of movement the citizens have done throughout the country. Also because the the U.S. embraces a "come all" ethos (for the most part).
Expecting Europe to become a "United States of Europe" does not make much sense, and practically speaking I don't see how it can work.
3
The idea that the EU/Germany were/are unwilling to restructure Greece's public debt is simply not true. The debt has been continuously and silently restructured since 2011. Here for more details: http://cubismeconomics.blogspot.co.uk/2015/07/greece-response-to-martin-...
1
Yannis "Match" Varoufakis had his chance to make a meaningful impact on his country. He could have helped to solve the many financial problems the Greek state and Greek society at large face. He failed completely in that task. Instead of tackling problems, one by one, he felt more compelled to lecture Europe on their short comings. Somewhere in the range of 80 Billion Euros are stached away in Swiss bank accounts. Most, if not all of this money is untaxed. And while Swiss authorities made more than one attempt to get the Greek finance minister to attend to this matter, Yannis couldn't be bothered. Seems he had "bigger" issues to deal with. Now, as an outsider, he is lecturing everybody once again. Good luck with your Pan-European political movement. The world is moving on, and Greeks themselves are rapidly distancing themselves from the empty Syriza promises you and your comrade made. Good luck to you in the ivory tower.
2
How about ... Thanks, Europe, for bailing us out at all?
The Greek governments, especially the socialists, have scammed their own people and Europe for years ... they are who's ruthless.
And attention: Welfare is not stimulating. The idea that you can tax people or borrow money, hand out welfare, and stimulate the economy is absurd and horribly destructive. All it does is cause economic collapse as fewer work and more is wasted until ... they run out of other people's money. Every time. Democrats/Labor/Socialists have hidden their political scams behind "Keynsian stimulus" for too long.
This "austerity" will get people to work again ... that's stimulating. The free ride is over!
The Greek governments, especially the socialists, have scammed their own people and Europe for years ... they are who's ruthless.
And attention: Welfare is not stimulating. The idea that you can tax people or borrow money, hand out welfare, and stimulate the economy is absurd and horribly destructive. All it does is cause economic collapse as fewer work and more is wasted until ... they run out of other people's money. Every time. Democrats/Labor/Socialists have hidden their political scams behind "Keynsian stimulus" for too long.
This "austerity" will get people to work again ... that's stimulating. The free ride is over!
4
Thank You, Mr. Varoufakis, for this valuable explanation of the failed economic policies that have brought so much economic strangulation to Greece and other European Union countries such as Ireland, Italy and Spain who adopted the Euro. Perhaps the true purpose of the Euro was to cause situations like the one in Greece where government services - paid for by the Good People of those countries - can be taken over by private business for private profit. Thank you for helping set up a Pan-European political movement to work towards Europe's social democratization. I recently visited France and learned that economic activists are setting up a similar program. The world is changing and WE must make sure it serves all people, not just the top 1% global financial elite.
4
There is no doubt about Greece's responsibility in the crisis: over-borrowing, corruption, fiscal evasion. The problem of early retirement can be added but it must be recognized that it was, in essence, a way to move people out of scarce jobs to give younger people a chance. The other responsible party are the banks who gave credit when they knew that the borrower could not pay back. Their lack of prudence was fortified by their knowledge that the EU agencies would bail them out, and they turned out to be right. Meanwhile, Germany and France were pressuring Greece to spend more money on armaments that they did not need.
Ok., now that we have assigned both real and moral sanctions, we can stop rehearsing them time and again and think of what is the best way to solve the problem.
The situation is clear: Greece cannot repay the debt and insisting on austerity will continue to depress the economy. The solution is also evident: reduce drastically the debt, improve the economy, get rid of corruption and fiscal evasion, and give Greece much more time to deal with its debt. Any takers?
Ok., now that we have assigned both real and moral sanctions, we can stop rehearsing them time and again and think of what is the best way to solve the problem.
The situation is clear: Greece cannot repay the debt and insisting on austerity will continue to depress the economy. The solution is also evident: reduce drastically the debt, improve the economy, get rid of corruption and fiscal evasion, and give Greece much more time to deal with its debt. Any takers?
6
The world reacted rather late to the economic crisis in Greece. The first two debacles went unnoticed. The debt was not such a big amount to have created a crisis that size. The bigger powers in Europe skipped on many reforms in Greece. Opting for the second currency is always good. At least it creates reserves for a country . Greece still not opts for the second currency. The level of corruption can be very high in the countries where two currencies are in use, namely China and India. If industry becomes strong in Greece such times may not come again.
1
There once was a comedy album about Noah building The Ark. Well, when Noah questioned why he had to build an Ark, and such a large one, a voice can down from the usual "Up Above" It said: "How long can you tread water?"
This is kind of how The Troika has been backing its unwilling dance partner back out onto the floor. Every time that the combined European Central Bank, E. U. Commission and the IMF extend additional bail-out extensions, nothing whatsoever flows through to the people. Nothing is directed toward expanding the Greek Economy. If that were the case, it would: reduce unemployment; increase tax revenue; expand potential job creation through the Economic "Multiplier Effect" and decrease the demands on the Social Safety Net.
Just look where the funds in the moist recent bail-out extension are destined to go: Beef-up the Greek banking system, which would be vital if Greek were ever going to climb out of its current financial devastation; and to enable Greece to re-pay prior bail-out loans to the creditors--that blame Troika. And for that, Greece will have to accept further Austerity measures.
The creation of the common currency, the Euro, was a really dumb idea. In essence, the Eurozone is searching for its own bail-out--a way of giving the appearances that the Euro is, in fact relevant. But, this whole exercise, which has been going on for four and a half-years is merely digging a hole deeper and deeper into the Abyss.
http://thetruthoncommonsense.com
This is kind of how The Troika has been backing its unwilling dance partner back out onto the floor. Every time that the combined European Central Bank, E. U. Commission and the IMF extend additional bail-out extensions, nothing whatsoever flows through to the people. Nothing is directed toward expanding the Greek Economy. If that were the case, it would: reduce unemployment; increase tax revenue; expand potential job creation through the Economic "Multiplier Effect" and decrease the demands on the Social Safety Net.
Just look where the funds in the moist recent bail-out extension are destined to go: Beef-up the Greek banking system, which would be vital if Greek were ever going to climb out of its current financial devastation; and to enable Greece to re-pay prior bail-out loans to the creditors--that blame Troika. And for that, Greece will have to accept further Austerity measures.
The creation of the common currency, the Euro, was a really dumb idea. In essence, the Eurozone is searching for its own bail-out--a way of giving the appearances that the Euro is, in fact relevant. But, this whole exercise, which has been going on for four and a half-years is merely digging a hole deeper and deeper into the Abyss.
http://thetruthoncommonsense.com
1
Greece voted No. Europe gave them Yes.
After following Greece’s debt crisis news carefully. The Randy Newman song always comes to mind every time I think of how it all transpired. The song is called: The Great Nations of Europe.
I won’t sing it, but to me, the refraining verse of that song says it all!
After following Greece’s debt crisis news carefully. The Randy Newman song always comes to mind every time I think of how it all transpired. The song is called: The Great Nations of Europe.
I won’t sing it, but to me, the refraining verse of that song says it all!
1
Greece and its apologists have provided us the portrait of artful delusion. The country collapsed not from external forces but through the unbearable weight of its own massive internal corruption and impressive mismanagement, assisted by its ruinous social institutions that include the incontrovertible belief that democracy allows a nation to vote itself a perpetual free lunch.
6
The article correctly points to the need for a looser monetary policy in the Eurozone, even if it fails to acknowledge the evolution that has taken place in the last year - most visibly the large QE program put in place by the ECB.
However it also perpetuates the delusion that Greece's problems could have been solved, had Germany simply agreed to more flexible rules. Unfortunately, the problems of Greece - a weak and corrupt state, hopelessly inefficient tax collection - are far beyond the reach of such a solution.
Simply put, Greece should not have been admitted in the Eurozone (and would not have been if it had honestly reported on its economic indicators at the time of entry). As a result, the EZ is now faced with a stark choice between pushing Greece out (Germany's preference) or spending yet more hundreds of billions to attempt to raise the country up to the level of the rest of the EZ.
So far Europe has chosen the second path, although that may still fail. But this has not direct relation to the monetary policy issues that Yanis Varoufakis attempts to use as a convenient excuse for Greece's woes.
However it also perpetuates the delusion that Greece's problems could have been solved, had Germany simply agreed to more flexible rules. Unfortunately, the problems of Greece - a weak and corrupt state, hopelessly inefficient tax collection - are far beyond the reach of such a solution.
Simply put, Greece should not have been admitted in the Eurozone (and would not have been if it had honestly reported on its economic indicators at the time of entry). As a result, the EZ is now faced with a stark choice between pushing Greece out (Germany's preference) or spending yet more hundreds of billions to attempt to raise the country up to the level of the rest of the EZ.
So far Europe has chosen the second path, although that may still fail. But this has not direct relation to the monetary policy issues that Yanis Varoufakis attempts to use as a convenient excuse for Greece's woes.
3
Y'all just keep pouring in more money and coming up with more plans; kinda like the "war on drugs" in the U.S. No one has the sense to stop.
3
How Europe crushed Greece?
It FORCED Greece in engage in decades of corruption, tax evasion and poor political decisions.
It FORCED Greece to join the EZ and to cook its books (more corruption) in order to request the entry.
If FORCED Greeks to live beyond their means, to work less hours and less years than other Europeans and to later DEMAND that taxpayers from other countries pick up the bill.
It FORCED Greece to develop probably some of the most irresponsible fiscal and monetary policies in all of Europe and to borrow way beyond its means and later to threat default – because their decisions are not their fault!
Then the Greeks blamed it all on Germany and received several hundred billions more – in order to start doing everything all over again.
Greece will always be a bankrupt country unless it admits to its own failures instead of blaming others.
It should start by fixing its fiscal, business and political culture.
It FORCED Greece in engage in decades of corruption, tax evasion and poor political decisions.
It FORCED Greece to join the EZ and to cook its books (more corruption) in order to request the entry.
If FORCED Greeks to live beyond their means, to work less hours and less years than other Europeans and to later DEMAND that taxpayers from other countries pick up the bill.
It FORCED Greece to develop probably some of the most irresponsible fiscal and monetary policies in all of Europe and to borrow way beyond its means and later to threat default – because their decisions are not their fault!
Then the Greeks blamed it all on Germany and received several hundred billions more – in order to start doing everything all over again.
Greece will always be a bankrupt country unless it admits to its own failures instead of blaming others.
It should start by fixing its fiscal, business and political culture.
14
Really!?
In Fact Greece should never have been admitted to the EU. They got millions after joining and never did a dam thing about fixing their corrupt system. They just kept asking for money. They have nothing to do with Europe. This is a Middle Eastern banana Republic.
In Fact Greece should never have been admitted to the EU. They got millions after joining and never did a dam thing about fixing their corrupt system. They just kept asking for money. They have nothing to do with Europe. This is a Middle Eastern banana Republic.
3
Who knew that Germany hated Greece so much? It seems that Merkel has taken von Clauswitz and changed his text just a little to read: Monetary policy is just a continuation of politics by other means.
I feel for Greece, and as one who is aware of just how much help Germany got from the Allies less than 70 years ago, I'm appalled at Germany. Oh, well, maybe they'll take in some Greek refugees next year.
I feel for Greece, and as one who is aware of just how much help Germany got from the Allies less than 70 years ago, I'm appalled at Germany. Oh, well, maybe they'll take in some Greek refugees next year.
3
Oh quit your endless whining, Varoufakis. I have never seen a politician work so hard to blame others for his country's problems. Or invent such laughably over-complicated "causes" to explain rampant, irresponsible overspending. What people are fed up with across the continent, Professor, is Greece – and little about your country's situation is more tiresome than having to listen to your nonsense. Your country lost its credit card. Sell the farm and start over.
7
Mr. Varoufakis did his best to dissuade the pilots of the euro aircraft from continuing to pull back on the stick to try to regain altitude. His efforts were to no avail. The troika's obstinance is suicidal.
4
To all the commenters here who wish to see the Greek people suffer for the foibles of its economy: you teach children a lesson when they misbehave; in an interlocking global economy, you search for solutions that benefit everyone as much as possible. Once and for all: it DOESN'T MATTER how naughty Greece got itself into this mess. What matters is getting them out of it. Stop echoing the finger-waggers on Fox and begin to understand that a spanking is not a solution.
2
Why doesn't Goldman Sachs pony up 100 billion to help Greece? Why are they allowed to just move on from their sleazy financial sleight of hand - hiding the magnitude of Greece's debt - with impunity? In the words of the famous Rolling Stone quote: Goldman Sachs is a great vampire squid wrapped round the face of humanity, relentless jamming its blood funnel into anything that smells like money..." Of course they glide on and leave atrocious damage in their wake, as always.
7
Quitting when the grapes become too sour is what Greece excels at. Unfortunately, it will be decades before Greece emerges from what is mostly a debacle of its own making. A series of dishonest governments attempted to mask the financial trickery that Greece used to make itself appear to be a successful experiment in socialism by the sea in the '00s decade. Only when a glimmer of honest accounting was instituted a few years ago did it become apparent to other nations what Greece had done by getting cheap money from the EU, then squandering much of it on huge pension payouts to its many government employees. It's fine to take care of your people, but only if the government is on a sound footing, and is run by honest people. Neither of these conditions were present in Greece.
Now, yet another Greek politician is quitting in order to work on the larger stage of European political reform. He is letting us know that he and many of his political cronies accept no responsibility for what has happened in Greece on their watch. What's wrong with this picture? Grandiosity and hubris, that's what.
It is remains the case that those with the money and power call the shots for those who throw good money after bad, then blame others for their own poor financial tactics. Until the Greeks accept their plight and work to improve their ability to govern, and their sense of responsibility, nothing will change for them.
4
Mr. Varoufakis caused the Greeks to vote with their money by drawing billions of their savings from Greek banks. His presence effectively caused a bank run. As for his proposal it did not receive the public endorsement of a single euro zone country who have lent billions to Greece. The referendum was based on deceit. He and Tsipras lied to the Greek people.
As a European citizen if I had to choose between the economic future as represented by Greece, France or Germany I would obviously choose that of Germany with its successful economy.
Mr. Varoufakis column exudes arrogance and conceit. He seems to believe that he alone holds the future of Europe on his shoulders which is not merely nonsense but silly.
The NYT has always been sympathetic to the views of Mr. Varoufakis and one has to wonder why that is so. The only answer that comes to mind is the one about birds of a feather flocking together.
The NYT also always favors opinions that disparaged the common currency. It does not seem to like the euro, an opinion shared by one of its columnists who used to be an economist. I have lived in Europe for over 20 years and I have experienced the enormous benefits that the single currency has brought. Those who continue to disbelieve in its existence are like some medieval philosophers who see some strange animal such as a giraffe in front of them but shake their heads and say such an animal cannot exist because it is not in their philosophy.
As a European citizen if I had to choose between the economic future as represented by Greece, France or Germany I would obviously choose that of Germany with its successful economy.
Mr. Varoufakis column exudes arrogance and conceit. He seems to believe that he alone holds the future of Europe on his shoulders which is not merely nonsense but silly.
The NYT has always been sympathetic to the views of Mr. Varoufakis and one has to wonder why that is so. The only answer that comes to mind is the one about birds of a feather flocking together.
The NYT also always favors opinions that disparaged the common currency. It does not seem to like the euro, an opinion shared by one of its columnists who used to be an economist. I have lived in Europe for over 20 years and I have experienced the enormous benefits that the single currency has brought. Those who continue to disbelieve in its existence are like some medieval philosophers who see some strange animal such as a giraffe in front of them but shake their heads and say such an animal cannot exist because it is not in their philosophy.
5
It is incredible to hear the former finance minister of Greece cast his entire critique on Europe regarding this economic mess without one mention of how both the Greek government and people bares any responsibility for having put themselves into this situation. What hubris.
The totally irresponsible manner in which Greece, with its history of their population avoiding paying their proper share of taxes (the tax cheats of Europe) and then relying on their government to provide massive governmental welfare programs to ensure a better quality of life, is shamefully clear to all those who know the facts.
This is like the spoiled child who has created their own problems pointing their finger at everyone but themselves.
The totally irresponsible manner in which Greece, with its history of their population avoiding paying their proper share of taxes (the tax cheats of Europe) and then relying on their government to provide massive governmental welfare programs to ensure a better quality of life, is shamefully clear to all those who know the facts.
This is like the spoiled child who has created their own problems pointing their finger at everyone but themselves.
6
The cause of this continuing trouble for Greece lies in the get-something-for-nothing beliefs of its people, and its politicians. Until that is destroyed, Greece will remain a failure, forever.
Mr Varoufakis is wrong about FDR pulling the US out of the Depression by ejecting from the Gold Standard. FDR destroyed the US economy - unemployment didn't go down until rationing was imposed and the war economy began, which still didn't get us out of the Depression (c.f., Robert Higgs, "Depression, War, and Cold War"). But Mr Varoufakis is a Socialist - he believes that government is the correct solution to every problem. So he believes that fiat money is of course the correct solution to economic problems, even when the government is the reason the economic problems exist. Like I said above, the cause of Greece's troubles is Greece's government. But a Socialist can and will never admit that.
Mr Varoufakis is wrong about FDR pulling the US out of the Depression by ejecting from the Gold Standard. FDR destroyed the US economy - unemployment didn't go down until rationing was imposed and the war economy began, which still didn't get us out of the Depression (c.f., Robert Higgs, "Depression, War, and Cold War"). But Mr Varoufakis is a Socialist - he believes that government is the correct solution to every problem. So he believes that fiat money is of course the correct solution to economic problems, even when the government is the reason the economic problems exist. Like I said above, the cause of Greece's troubles is Greece's government. But a Socialist can and will never admit that.
4
Isn't it curious that Greece is the ONLY country necessitating financial assistance to pull itself out of a disastrous budget?
How did Greece get into its present predicament? Here's how - by profligate spending and inadequate taxation:
*Upon a defense budget wildly out of proportion to its needs.
*Government cash benefits to both the pensioned and income earners that (as a percentage of GDP) is higher than Sweden, or Denmark or Germany and even Spain.
*A constitutional law that allows foreign based maritime services to repatriate profits without paying any tax.
I could go on, but the above is sufficiently indicative of how running Greece was way beyond all the bounds of any modern country.
And the rest of the EU-taxpayers were supposed to bail them out of their endemic profligacy, with no guaranties that governance would substantially change?
Sure, and the sun sets in the east ...
How did Greece get into its present predicament? Here's how - by profligate spending and inadequate taxation:
*Upon a defense budget wildly out of proportion to its needs.
*Government cash benefits to both the pensioned and income earners that (as a percentage of GDP) is higher than Sweden, or Denmark or Germany and even Spain.
*A constitutional law that allows foreign based maritime services to repatriate profits without paying any tax.
I could go on, but the above is sufficiently indicative of how running Greece was way beyond all the bounds of any modern country.
And the rest of the EU-taxpayers were supposed to bail them out of their endemic profligacy, with no guaranties that governance would substantially change?
Sure, and the sun sets in the east ...
4
You should have stayed at Valve Software. The hat thing was working.
Yanis, please. You're fooling no-one. In the second half of 2014, before you came to power, Greece was the fastest growing economy in Europe. 6 months later, Syrizia managed to to push Greece into a deep recession and close all the banks. You should be arrested for economic crimes against the state.
5
"Paris and Rome, cognizant that their deficit position would condemn them to a slow-burning recession under such a rules-based political union, see things differently."
I am sure they do, but where in God's name have they laid out any of their vision publicly? The answer is that they have not. When will they start standing up for southern Europe?
I am sure they do, but where in God's name have they laid out any of their vision publicly? The answer is that they have not. When will they start standing up for southern Europe?
Smoke, conjecture, financial engineering, blaming others not taking responsibility. That sums Mr. Varoufakis' position and for the life of me I do not understand why he still is being given such podia to vent his misguided rants.
Reforms is what Greece needs, institution building and accepting that change starts in Greece itself, with politicians showing the way. None of this is happening, although Mr. Tsipras may finally have started to see the light.
You can debt swap, collateralize public assets and create bad banks up to the hilt, but unless you address the underlying imbalances in the Greek economy and democracy, it will not attract a single Euro (or Renminbi) in investment.
This is what Mr. Varoufakis refuses to see, although it glares into his face. Is it blindness, cowardice or a mixture ? We will never know, as Mr Varoufakis vainly continues to be allowed to blow more smoke, conjecture and economic fairies into pages like these. The Greek people merit better than that.
Reforms is what Greece needs, institution building and accepting that change starts in Greece itself, with politicians showing the way. None of this is happening, although Mr. Tsipras may finally have started to see the light.
You can debt swap, collateralize public assets and create bad banks up to the hilt, but unless you address the underlying imbalances in the Greek economy and democracy, it will not attract a single Euro (or Renminbi) in investment.
This is what Mr. Varoufakis refuses to see, although it glares into his face. Is it blindness, cowardice or a mixture ? We will never know, as Mr Varoufakis vainly continues to be allowed to blow more smoke, conjecture and economic fairies into pages like these. The Greek people merit better than that.
3
At the critical moment when Greece needed to quit the Eurozone, it blinked. Your choice was between two bad outcomes and you chose the one that would provide the longest pain for the least benefit. Your frog got boiled. It's not too late. Greece can still quit the euro because it is not doing a thing to make life better in the country. Quit the euro and find new friends.
3
Mr Varoufakis, you must know that your country produces virtually nothing?
You must be aware of the fact that Greek businesses are fleeing at a rate reaching epidemic proportions since your leftist government won the elections.?
You keep talking about austerity imposed by the EU but the reality is that your populist ideas and obsession with soviet style public sector as well as your inability to negotiate a viable deal has loaded the latest deal with higher taxes on business that ever before and resulted in capital controls that destroyed the economy.
Why the tax payers have to maintain an enormous public sector where the average salary and pension is 3 x higher than those of the private sector? Why you never said anything about corruption of the public sector acting as a mafia blackmailing businesses on tax matters to receive big bribes?
All governments implemented the same method : taxes , more taxes unbearable taxes.
You refuse to see the obvious. Public spending in favour of the privileged needs to be reduced to allow the economy to breath. All political parties since 1974 have been playing the blame game promising the world to the voters.
You must be aware that SYRIZA too, offered well-paid jobs to friends and family. What Greece needs is less government intervention, less bureaucracy, more transparency in state financials, ZERO corruption, ZERO favouritism!
If you truly care about your country you should focus on the above, rather than your rebellious public image!
You must be aware of the fact that Greek businesses are fleeing at a rate reaching epidemic proportions since your leftist government won the elections.?
You keep talking about austerity imposed by the EU but the reality is that your populist ideas and obsession with soviet style public sector as well as your inability to negotiate a viable deal has loaded the latest deal with higher taxes on business that ever before and resulted in capital controls that destroyed the economy.
Why the tax payers have to maintain an enormous public sector where the average salary and pension is 3 x higher than those of the private sector? Why you never said anything about corruption of the public sector acting as a mafia blackmailing businesses on tax matters to receive big bribes?
All governments implemented the same method : taxes , more taxes unbearable taxes.
You refuse to see the obvious. Public spending in favour of the privileged needs to be reduced to allow the economy to breath. All political parties since 1974 have been playing the blame game promising the world to the voters.
You must be aware that SYRIZA too, offered well-paid jobs to friends and family. What Greece needs is less government intervention, less bureaucracy, more transparency in state financials, ZERO corruption, ZERO favouritism!
If you truly care about your country you should focus on the above, rather than your rebellious public image!
4
When you raise your workforce average retirement age to a reasonable number, and reduce your public employee workforce percentage to a reasonable number, I will read past the first paragraph.
2
What “Athens Spring” is the ousted Minister talking about? I must have missed something in his rationale. As did his colleagues in the Eurogroup session who failed to follow his “creative ambiguity” game strategy. Neither he nor the 40 other Syriza deputies who fled will be missed. Mr Varoufakis specialty is “opposition”, as is Mr Tsipras. Syriza and its leadership are guilty of letting the Greek people down, just like its predecessors did.
2
The Euro may have been a bad idea, but the notions that this infantile, vituperative superannuated Marxist's peddles are even worse. The idea that the rest of Europe, under severe economic pressures, should have subsidized continuing corruption and economic deceit in Athens in perpetuity was a nonstarter and Varoufakis' antics in trying to force it on the Euro zone were reminiscent of a tantrum in a preschool.
1
While Yanis argues that he does not think a return to the national currency is a solution, it is not clear what his opposition to the Bailout will lead to. I struggle to see his stance towards Laiki Enotita (Lafazanis) as honest. Indeed, a return to the national currency would present an alternate development model, but not one superior to the Euro path as explained here: http://wp.me/p5zzQG-eD
Playing the victim card is always good because it immediately clouds the truth.
3
The globalists make the rules now and there's not one meaningful thing a citizen can do about it.
1
Great commentary! One can only hope that the state-centric Euro project will collapse of it's own weight - BEFORE the continent is completely overrun my economic migrants.
1
If the Greek Government had started with a plan to enforce Taxes, like the Portuguese have done, reduce the outrageous retirements, hit the large businesses with confiscation or taxation then maybe the Eurozone would have been more receptive to a 'bad bank' plan and other high level actions. You can not be in a system that requires honest payment of taxes and have the benefits of the taxes at the same time without playing by the rules. It starts at the base, Yanis; not at the top.
2
How Greek Oligarchs nearly crushed Europe wouldn't have been a bad title either - and I'm all on the side of the Greek people who didn't take their money out of their own country and moved to London.
3
NYT does a great service to its readers throughout the world by publishing Mr Varoufakis's column since for many outsiders the thinking of those Syriza members who left the party after the referendum exercize turned sour has been somewhat mysterious. Especially the May 11 document is news for many a European.
1
The oracle moans on!
1
As far as my limited vision takes me none of this discussion is centered about those most affected who never see any of the monies loaned but as usual are the ones actually held responsible and as such called upon to repay the monies owed.
Workers and small business owners, not just in Greece but throughout the EU who are actually forced to pay their taxes or see whatever investment they have whether in business or personal property subject to expropriation by the very banks who got the nation into the mess, have no voice and less defense against their very own governments which have never paid more than lip service to them.
Greece has never recovered from the literal and figurative rape of the fascists during the second world war and is now suffering a similar financial trauma by similar people who have learned that guns aren't needed to take over when laws are written and used as armaments.
Business as usual.
Workers and small business owners, not just in Greece but throughout the EU who are actually forced to pay their taxes or see whatever investment they have whether in business or personal property subject to expropriation by the very banks who got the nation into the mess, have no voice and less defense against their very own governments which have never paid more than lip service to them.
Greece has never recovered from the literal and figurative rape of the fascists during the second world war and is now suffering a similar financial trauma by similar people who have learned that guns aren't needed to take over when laws are written and used as armaments.
Business as usual.
1
No Mr. Varoufakis, you and your Greek citizens crushed Greece when you all decided to not pay any taxes and your government though that would be ok. As one of your citizens said to this very newspaper, "in Greece, if you pay all your taxes you're a sucker." Not even the German firm Hochtief that operates in your country pays taxes. It is estimated that they owe your government around €500 million ($600). And to top it off, it was your government that with little money to spare decided to take bribes from French officials in exchange for purchasing more French military equipement that you couldn't afford and didn't need. Mr. Varaufakis, it's time for you and your government officials to take responsibility, stop blaming Europe and start taxing your citizens.
1
No one did more to antagonize Greece's EU partners and to isolate and humiliate Greece than the clownish Mr Varoufakis with his Bozo outfits, boorish manners and babbling tongue. That he managed to do it in such a short time, before his Prime Minister realized what was happening and fired him, is quite an accomplishment.
2
Germany showed Greece the life-style it could have by borrowing money in TV and other media.
Germany never presented a plan that could work without borrowing.
No wonder failure was produced.
Germany never presented a plan that could work without borrowing.
No wonder failure was produced.
"With less pressure on the government to depress demand in the economy by cutting public spending, the Greek economy would attract investors of productive capital."
Oh really? And what about tax cheats, government inefficiency & red-tape, and an all-round unfavorable business climate, coupled with no political will in Athens to make any changes?
Mr. Varoufakis also forgets to mention that both business activity & investment in Greece (foreign & domestic) dropped off considerably after Syriza's election in January, and the ideological descendants of Greece's Communist party are now looking for foreign capitalists to save Greece?
Oh really? And what about tax cheats, government inefficiency & red-tape, and an all-round unfavorable business climate, coupled with no political will in Athens to make any changes?
Mr. Varoufakis also forgets to mention that both business activity & investment in Greece (foreign & domestic) dropped off considerably after Syriza's election in January, and the ideological descendants of Greece's Communist party are now looking for foreign capitalists to save Greece?
I cannot understand Varoufakis refusing to even consider dropping the Euro. The Euro has been a disaster for Greece. Instead of safety and economic increase, Euro membership has brought economic ruin worse than the Great Depression. Iceland has fared far better without ever becoming a Euro nation despite having debt problems similar to Greece's. Even Schauble considered Greece leaving the Euro a better idea than the constant bailouts and the inevitable failure of that remedy.
For Varoufakis, it's always about Varoufakis, so one has to be skeptical of whatever profound and heroic measures, past or future, that he proposes.
2
The Athens Spring was very inspiring; how long is it since any country in the West rose as one to defend their rights? That’s what democracy is supposed to be about. The Troika response made my blood run cold.
They are like the GOP in the US. They have no social empathy; they embrace double standards, operating without logic and with a distinct lack of intelligence, refusing to learn their own lessons and those of history; they have no true understanding of how economics actually works and they clearly believe that others must pay for their mistakes but they're somehow miraculously exempt from the consequences of their own mindless and socially irresponsible behavior.
So everybody suffers. The relentless cycle of news seeking fresh blood has all-but obliterated Greece from our attention but the Greeks continue to struggle and Europe continues to fall apart.
They are like the GOP in the US. They have no social empathy; they embrace double standards, operating without logic and with a distinct lack of intelligence, refusing to learn their own lessons and those of history; they have no true understanding of how economics actually works and they clearly believe that others must pay for their mistakes but they're somehow miraculously exempt from the consequences of their own mindless and socially irresponsible behavior.
So everybody suffers. The relentless cycle of news seeking fresh blood has all-but obliterated Greece from our attention but the Greeks continue to struggle and Europe continues to fall apart.
3
The problem is not the money. It is the enormous structural problems Greece has, read corruption on too many levels. As long as there is no politician brave enough to stand up for necessary painful changes, Greece will remain a third world country, no matter how much money, how much investment come into the country.
1
More than a few of these comments are sadistically misanthropic, and not a little racist. Is it really so comforting to believe, against all reason, that the Greek people are just culturally backwards? That they are all lazy, good-for-nothings, who refuse to work or pay taxes, and simply want to steal money from their Northern betters? It's disgusting, and the commentators should be ashamed of themselves for writing such drivel.
First, stop speaking of "Greece" as if it were an agent with power to do this or that. Thus "Greece" cannot collect its taxes. "Greece" cannot get its economy in order. etc. Greece is a sociopolitical entity that consists of millions of individuals, most of whom are relatively powerless to do much of anything. How, precisely, does "Greece" start collecting all the taxes it is owed, when the very people who owe the taxes are the ones which control what "Greece" does or doesn't do? Northern European bankers, and their moralizing supporters across the Atlantic, can destroy Greece's economy for their own profit - the rich in Germany don't suffer, the rich in Greece don't suffer, the only ones who suffer are the common people in Greece, who are NOT racially and culturally inferior and backward, who do NOT deserve the sanctimonious punishment inflicted upon them without end.
Does anyone have a plan to HELP the PEOPLE of Greece? Or is it more fun to sit back and imagine the poor are poor because of their own moral failings, and laugh at their plight?
First, stop speaking of "Greece" as if it were an agent with power to do this or that. Thus "Greece" cannot collect its taxes. "Greece" cannot get its economy in order. etc. Greece is a sociopolitical entity that consists of millions of individuals, most of whom are relatively powerless to do much of anything. How, precisely, does "Greece" start collecting all the taxes it is owed, when the very people who owe the taxes are the ones which control what "Greece" does or doesn't do? Northern European bankers, and their moralizing supporters across the Atlantic, can destroy Greece's economy for their own profit - the rich in Germany don't suffer, the rich in Greece don't suffer, the only ones who suffer are the common people in Greece, who are NOT racially and culturally inferior and backward, who do NOT deserve the sanctimonious punishment inflicted upon them without end.
Does anyone have a plan to HELP the PEOPLE of Greece? Or is it more fun to sit back and imagine the poor are poor because of their own moral failings, and laugh at their plight?
22
Thank you for saying what needs to be said about the stereotyping of an entire nation's population. I have lived in Greece over the years and I live and work here now (I'm American). My Greek friends have worked hard and have always payed their taxes - I do not run with the upper crust. Over the past 5 years my friends have been asked to pay and pay more, and they have done so, wringing their hands about their children's futures. Greeks here of the middling classes (whatever that even means) are sliding further down the economic ladder because they abide by the rules and still pay what the cronies in the government and the EU demand. Pretty soon, as with other families that began with less, they will have no more left to pay. And then what will we do: consign the hard working and honest people of a nation to eternal destitution because of the decisions by the rich Greeks and rich EU bankers to bail out the EU banks? I guess that is what the EU is still going to pursue, despite the clear evidence that austerity here is not making a huge contribution to the government coffers -- and more to the point, the EU is still going to pursue this course despite the IMF's own acknowledgement that the debt payment plan is unsustainable. This stubborn insistence on not trying to figure out a better way is an immoral stance that consigns an entire nation to decades of poverty, homelessness, and unemployment. What kind of a "union" is this European Union? It is certainly not a humane one.
1
Greece is the fount of wisdom - alas, from the past.
Plato, Socrates et al are long deceased - unfortunately.
The current crop of politicians and so-called thinkers in Greece do not measure up. If they had any wisdom - and clearly they do not - they would not lecture more successful countries on how to manage financial matters.
As that great philosopher Clint Eastwood once said - "A man's got to know his limitations." Mr. Varoufakis would do well to observe that maxim.
Plato, Socrates et al are long deceased - unfortunately.
The current crop of politicians and so-called thinkers in Greece do not measure up. If they had any wisdom - and clearly they do not - they would not lecture more successful countries on how to manage financial matters.
As that great philosopher Clint Eastwood once said - "A man's got to know his limitations." Mr. Varoufakis would do well to observe that maxim.
2
Greece is open for tourism...pass the Retsina, spanikoptia and taramousalata...
1
Yanis Varoufakis - the master of tall tales. Everything is always someone else's fault. He has the great plan - all he needs is that someone else pays for it. And if those other countries don't want to pay for it - well then everything that follows is their fault - clearly.
Two prime ministers failed with the third on the way. Well, that is of course also the fault of the EU - not the Greek population. After all, how could anyone expect of them to stick with the plan when things are finally looking up. Deficit was down, the economy improving - and the Greek public votes Syriza with their naive dreams into power and everything turns bad through their brinkmanship. Even Prof. Krugman has already said that he was surprised at the bad preparation of Tsipras and Varoufakis.
And now - instead of staying in Greece and helping work through the problems, he leaves the mess he caused to others and rather wants to found a new party of people that can give him the adulation he so craves.
Varoufakis is one of the most pitiful examples of a politician I have ever heard of.
Two prime ministers failed with the third on the way. Well, that is of course also the fault of the EU - not the Greek population. After all, how could anyone expect of them to stick with the plan when things are finally looking up. Deficit was down, the economy improving - and the Greek public votes Syriza with their naive dreams into power and everything turns bad through their brinkmanship. Even Prof. Krugman has already said that he was surprised at the bad preparation of Tsipras and Varoufakis.
And now - instead of staying in Greece and helping work through the problems, he leaves the mess he caused to others and rather wants to found a new party of people that can give him the adulation he so craves.
Varoufakis is one of the most pitiful examples of a politician I have ever heard of.
15
I agree sounds like a great plan but maybe if you had not been so abrasive, rude and un diplomatic and would have found a more diplomatic way of presenting it you would have had better results? Shall I remind you of your fits meetings with EU representatives? Maybe the Greek people wanted you to stand up to the Europeans but in the end it back stabbed and led to an even harder response. What a shame .....
1
Reasonable, plain logical. Aristotle - audience, what you say and you. The say makes sense and the audience was mixed. There were Germans holding to rules over all else but the southern Europeans were very open, initially yearning to be led. But you? Posing, lecturing, caprice. By all accounts, methinks Aristotle and his academic predecessors would have picked out that third. The failure, Varoufakis, lay with you. You didn't want to win. You wanted to strut and afterwards dine on the stupidity of others. Old Greeks were much the better men.
We will know that Greece is on the road to recovery on the day that its "leaders" stop blaming the rest of the world for its problems. This column and everything I've heard in the last year convinces me that the country suffers from a moral rot from top to bottom.
1
So now the former Greek Finance Minister plans to fix Europe!
2
Varoufakis is the leader we need, but not the leader we deserve.
Too few people in politics are willing to speak the truth so openly and bluntly. A stark contrast with career politicians, who obfuscate and confuse at every turn.
Too few people in politics are willing to speak the truth so openly and bluntly. A stark contrast with career politicians, who obfuscate and confuse at every turn.
2
Yanis Varoufakis should be applauded for his boldness in consistently and constructively opposing Eurozone austerity in exchange for Greece’s economic capitulation. In both conception and execution EU bail-outs have been largely punitive and destructive. They are contrary to the economic growth of Greece and its capacity to compete in the international markets, both essential to its survival and ability to ultimately compensate its creditors. Illustrative of the unjust criticisms are several of the comments made on this article. Not a single one addresses his proposals head-on and in detail. Instead, the criticisms by several of the commentators are focused on holding him responsible for grave errors by Greek governments made years before he left academia to serve his country as its Minister of Finance. He is being singularly accused for placing the blame for the problems facing Greece on mistakes made by the Eurozone as a whole even though many other political leaders and reputable economists throughout the EU hold similar if not identical views. He is even ridiculed for losing credibility with the other Eurozone ministers of finance failing to point out that the reason for this was their discomfort in being reminded of their complicity in the tragedy facing Greece. Let us listen to this dedicated public servant whose theories make a lot of sense for his country as well as the EU at large.
3
Sorry - but Politics beats Economics everytime. Any good Economist should be able to look at history and know this, as an Economist myself. Playing Game Theory with the EU was a high hope to begin with. Take your losses and don't complain.
1
Big talk.
You just didn't want to pay your debt.
You just didn't want to pay your debt.
1
Quitting when the grapes become too sour is what Greece excels at. Unfortunately, it will be decades before Greece emerges from what is mostly a debacle of its own making. A series of dishonest governments attempted to mask the financial trickery that Greece used to make itself appear to be a successful experiment in socialism by the sea in the '00s decade. Only when a glimmer of honest accounting was instituted a few years ago did it become apparent to other nations what Greece had done by getting cheap money from the EU, then squandering much of it on huge pension payouts to its many government employees. It's fine to take care of your people, but only if the government is on a sound footing, and is run by honest people. Neither of these conditions were present in Greece.
Now, yet another Greek politician is quitting in order to work on the larger stage of European political reform. He is letting us know that he and many of his political cronies accept no responsibility for what has happened in Greece on their watch. What's wrong with this picture? Grandiosity and hubris, that's what.
It is remains the case that those with the money and power call the shots for those who throw good money after bad, then blame others for their own poor financial tactics. Until the Greeks accept their plight and work to improve their ability to govern, and their sense of responsibility, nothing will change for them.
1
Larry Summers? Mr. Varoufakis worked with Summers on a plan to save Greece? No wonder it was rejected.
Mr. Varoufakis, what has happened to Greece, and to the world, is a catastrophe. Debt swap instruments and financial engineering products are what caused the global financial meltdown that took Greece down with it. Those devilish inventions must be outlawed. They will not save anything.
Mr. Varoufakis, what has happened to Greece, and to the world, is a catastrophe. Debt swap instruments and financial engineering products are what caused the global financial meltdown that took Greece down with it. Those devilish inventions must be outlawed. They will not save anything.
1
This article appears to shift the blame to France and Italy, when the real culprit has to do with the EU structure and the Greek government's own policies.
At this point, a credible threat to withdraw Greece from the European union, impose restrictions on capital outflow, and to repay all bank debt in Drachmas may well be the way to force bankers to offer more favorable terms for repayment.
At this point, a credible threat to withdraw Greece from the European union, impose restrictions on capital outflow, and to repay all bank debt in Drachmas may well be the way to force bankers to offer more favorable terms for repayment.
1
Sad to hear Varoufakis does not support exiting the euro & devaluing… it’s the only way the county can jump start its economy & make structural reforms democratically… does the populace vote to retire @ 55, generous welfare benefits, nepotism in jobs, protected industry .. ie bakeries & pharmacies that are legally protected from competition, pay no taxes, etc… or not? It’s rather disingenuous to say Greeks want it all in addition to maintaining the euro… which obligates citizens of other countries to pay for the lifestyle the Greeks want, but cannot afford. I am deeply saddened by the continued suffering the Greeks will endure because its politicians are unwilling to explain honestly to their citizen’s the double bind they’re mired in… because they’ve chosen to clutch the euro ever so tightly…
Sorry Yanis, but don't let the door hit you in the rear on your way out. All during your tenure, you were a serial disappointment, preferring to use brinksmanship instead of statesmanship. Greece and the EU wasted months while you delayed and prevaricated. Don't take this personally - well, OK, a little - but you won't be missed.
2
I think the outcome of the negotiations could have been much more productive if Tspiras hadn't hired a game theorist as his adviser. All the criticisms of Germany's plan may be valid but Tspiras lost the battle of world opinion with the antics of Yanis Varoufakis. When you are a debtor, you don't go around lecturing your banker on how to do things when you were the one who failed to live up to your terms. It may not be fun to grovel, but sometimes you have to swallow your pride and work behind the scenes to build up your alliances. Countries like France should have been natural allies, but with Yanis Varoufakis's grand standing at every meeting, he made enemies with nearly everyone in Europe. You win arguments by persuading others, not lecturing them.
11
Mr Varoufakis,
You used to be a nobody before you were called upon by your "friend and comrade" Alexis Tsipras to be someone who would negotiate with the European Union, the European central Bank, and the IMF.
Your tenure as Finance Minister, brief as it may have been, was the most toxic and obnoxious tenure by any Finance Minister in Greece's history. All you wanted was the chance to earn millions on the lecture circuit: you have been doing just that since your ignominious resignation.
You have not had the political courage to join the group of Syriza members of Parliament who oppose the "Mnimonio" (agreement) reached by Prime Minister Tsipras and the 'institutions.' You play an 'on-the-fence' immoral game, while cashing-in on your shameful performance as Finance Minister. If you are so concerned about the "troika's ruthless humiliating imposition," why not join the anti-""troika's ruthless humiliating imposition" group of Mr Lafazanis? I can tell you why. It is because you hope to continue playing this game whose only goal is to feed your narcissism and your bank account.
I am stunned that the New York Times has been duped by your duplicity and let you publish an Op-Ed piece in today's paper.
You used to be a nobody before you were called upon by your "friend and comrade" Alexis Tsipras to be someone who would negotiate with the European Union, the European central Bank, and the IMF.
Your tenure as Finance Minister, brief as it may have been, was the most toxic and obnoxious tenure by any Finance Minister in Greece's history. All you wanted was the chance to earn millions on the lecture circuit: you have been doing just that since your ignominious resignation.
You have not had the political courage to join the group of Syriza members of Parliament who oppose the "Mnimonio" (agreement) reached by Prime Minister Tsipras and the 'institutions.' You play an 'on-the-fence' immoral game, while cashing-in on your shameful performance as Finance Minister. If you are so concerned about the "troika's ruthless humiliating imposition," why not join the anti-""troika's ruthless humiliating imposition" group of Mr Lafazanis? I can tell you why. It is because you hope to continue playing this game whose only goal is to feed your narcissism and your bank account.
I am stunned that the New York Times has been duped by your duplicity and let you publish an Op-Ed piece in today's paper.
3
I am a born and raised European who has been around in almost all European countries. And I have a strong bavkground in economics. Mr. Varoufakis is dead and dead wrong. This crisis has been a culture clash between the old school, conservative southern European socialism and the northern European model called the 'rhineland model'. The north has won, old school socialism is bankrupt. It writes checks it economy can't cash. As former British prime minister Margaret Thatcher already predicted in the 80s of the previous century: the problem with socialism is that ultimately you run out of other peoples money.
Dear NYT readers, please go on youtube and look at the recent speech of mr. Verhofstadt to mr. Tsipras when he visited the European Parliament. That mentions precisely what this Greek crisis is truly about. Shame on you mr. Varoufakis for your incorrect assertions of which you know that they are ballony.
Dear NYT readers, please go on youtube and look at the recent speech of mr. Verhofstadt to mr. Tsipras when he visited the European Parliament. That mentions precisely what this Greek crisis is truly about. Shame on you mr. Varoufakis for your incorrect assertions of which you know that they are ballony.
1
The Greek government spent the money which is now owed. What the Greeks call punitive austerity is in fact the level of spending they should have been at all along. It's all they can afford regardless of their debt. The failure of the Greek people to accept these facts has caused these repeated crises.
Were the Greek government to levy and collect reasonable taxation on their wealthy citizens,they probably could afford a lot more. Were their government officials less corrupt, their economy would function more efficiently. The fault, dear Greece, lies not in the Euro but in yourselves.
Were the Greek government to levy and collect reasonable taxation on their wealthy citizens,they probably could afford a lot more. Were their government officials less corrupt, their economy would function more efficiently. The fault, dear Greece, lies not in the Euro but in yourselves.
1
Mr Varoufakis, if I want self-promoting blather I will stick with the original currently in circulation, Donald Trump. At least he knows how to negotiate without burdening a country in despair with 80 more billion euros in debt.
1
Everyone is to fault in the Greece fiasco, including the side of America that is not exceptional whatsoever.
So, having a plan that the other side won't accept now counts as leadership? And its author is a champion? SYRIZA promised an end to austerity. On the eve of the vote they hastily agreed to it. But the plan was incomplete, and it was too late. After forcing a meaningless and dead-letter vote SYRIZA then accepts a more austere plan than the offer preceding the vote. This I s courageous leadership? Varoufakis may be right on the economics, but his political sense is tone deaf and stupid. And the hasty revisionism is blatant. Tsipras lied to his supporters, accepted what he said he never would, forced an empty vote instead of deciding himself (as leaders should), made a worse deal, ejected his more constant party members, and now claims that if his party is not put back in power that he'll vote against what he already agreed to do. If, Mr. Varoufakis, in reconsidering history, you find yourself the hero and saint and everyone else a knave or fool, it just may be that you're writing fiction. It's amazing how much this man loves a mirror but does not really look at himself.
2
The tug-of war between the financial interests of hyper-capitalism, exemplified by the sinister greed of banks, and the naïve ideals of democracy, sadly exemplified by Greece — an ill equipped society lacking the institutions, laws and norms of a contemporary democracy. In this asymmetrical battle, it is no surprise who wins and who is crushed.
Greece will need to take care of its own internal problems, whether it exits the Euro Zone, or stays in. The larger problem remains for the European countries, if they want to call themselves a European Union: to write a "democratic constitution" that defines the rights and responsibilities of its member states, and to establish an "differential economy" that enables diverse capacities to evolve and succeed while controlling the competing self-nterests of capitalism.
Greece will need to take care of its own internal problems, whether it exits the Euro Zone, or stays in. The larger problem remains for the European countries, if they want to call themselves a European Union: to write a "democratic constitution" that defines the rights and responsibilities of its member states, and to establish an "differential economy" that enables diverse capacities to evolve and succeed while controlling the competing self-nterests of capitalism.
2
My understanding is that the biggest wrench in the gears of the negotiations were you Mr. Varoufakis. Perhaps if you weren't so imperious and impudent you would have been able to win some people over. As it is you failed your country.
2
Yanis, you are an intellectual fraud. You masquerade as a competent well trained economist when the opposite is true. Name one idea you ever had that impacted the world of economics. You cannot. You have made your career by finding people gullible enough to believe the aura of intelligence that you peddle. Your term as finance minister was a continuation of this. Do you even know that there are people who actually know about macroeconomics and finance? That it is not all posturing and posing. You seem to be so blissfully unaware of your own ineptitude and inexperience.
But continue writing idea free op-eds and giving interviews and letting the ego train roll on for as long as you can. Your future is safe as long as there are fools for you to convince.
But continue writing idea free op-eds and giving interviews and letting the ego train roll on for as long as you can. Your future is safe as long as there are fools for you to convince.
1
"Comrade" Varoufakis is wrong for a simple reason which does not have anything to do with any plan he might have presented. It could be that his plan was great... on paper. The fact is that no matter what Mr Varoufakis presented was devoid of any TRUST and most particularly coming from a comrade. So when the chicken came home to roost it was already too late. The momentum was to hit the Greeks. Right or wrong is not the issue. It was simply too late.
Much Peace to Greece and its people as well as all around the world.
Much Peace to Greece and its people as well as all around the world.
Sigh... even now, at this late hour, you continue to speak of bringing Greece back to the debt capital market spigot. Swapping debt, qualifying for the quantitative easing program and then lapping up the sweet lucre of the money markets. Why is it so hard to get you to see that Greece needs job creating direct investments? Restructuring the debt is meaningless if the reforms needed to make Greece competitive and attract investments like addressing wage costs, labor flexibility and busting market cartels are never implemented.
You speak of political union but how many times have you decried the assistance offered to Greece as a yoke that violates your country's sovereignty and turned it into a debt colony? How can there be a political union if you are unwilling to cede even modest control? It was you who chased out and humiliated the EU and IMF monitors who were there simply to observe.
By refusing to fight for what you believe in you have let down the people of Greece. Not standing for election after the prominence you insisted on hogging is a betrayal of all who supported you. Did you mean what you said or was it all a show to bolster your own ego? However painful it would have been, if you cared a smite about Greece, you would have contested this election.
Eloquence is not wisdom and showmanship does not a leader make. Run away Yanis, you should never have showed your face in the first place.
You speak of political union but how many times have you decried the assistance offered to Greece as a yoke that violates your country's sovereignty and turned it into a debt colony? How can there be a political union if you are unwilling to cede even modest control? It was you who chased out and humiliated the EU and IMF monitors who were there simply to observe.
By refusing to fight for what you believe in you have let down the people of Greece. Not standing for election after the prominence you insisted on hogging is a betrayal of all who supported you. Did you mean what you said or was it all a show to bolster your own ego? However painful it would have been, if you cared a smite about Greece, you would have contested this election.
Eloquence is not wisdom and showmanship does not a leader make. Run away Yanis, you should never have showed your face in the first place.
1
In a brilliant Times column about the Greek debt crisis, and its historical precedents, Eduardo Porter argued that creditor governments don't want to recognize losses. Throughout the 20th Century, debt crises were solved only by a deep debt write-down. But invariably, it took a decade of half-measures before this obvious step was taken. Then, and only then, did a moribund economy spring back to life and begin to grow again. http://tinyurl.com/nrcr95a
3
Excellent piece. Good to see this and its a shame the Germans refused it.
3
Mantain the euro without complying with the rules of the euro is a contradiction in terms. The choice is not the one that Mr. Varoufakis present but: euro following the rules or drachma .
1
Just the facts.
It doesn't matter who one blames for Greece's problems:
1) The "bail-out" of Greece fixed nothing.
2) Greece, a NATO member, European Union member and Eurozone member, is a front line state between Europe and the Islamic world.
3) Turkey, the only NATO member within the Islamic world, has opened its borders to refugees moving west into Europe, as well as to jihadists moving from Europe to Syria and Iraq and is still refusing to fully cooperate against ISIS.
CONCLUSIONS
Greece should suspend it membership in NATO and negotiate with Russia and China for "most-favored nation" status and go back to the drachma.
This will hurt Greece in the short term as well as Europe in the short and long terms.
But Greece has nothing to gain from being in the EU and nothing to lose by becoming a "neutral" nation.
It doesn't matter who one blames for Greece's problems:
1) The "bail-out" of Greece fixed nothing.
2) Greece, a NATO member, European Union member and Eurozone member, is a front line state between Europe and the Islamic world.
3) Turkey, the only NATO member within the Islamic world, has opened its borders to refugees moving west into Europe, as well as to jihadists moving from Europe to Syria and Iraq and is still refusing to fully cooperate against ISIS.
CONCLUSIONS
Greece should suspend it membership in NATO and negotiate with Russia and China for "most-favored nation" status and go back to the drachma.
This will hurt Greece in the short term as well as Europe in the short and long terms.
But Greece has nothing to gain from being in the EU and nothing to lose by becoming a "neutral" nation.
5
I find Varoufakis's citing of FDR going off the gold standard a convincing point for rejecting the German/troika strict-rules-based standard as most discriminatory to Greece and other weker EU countries and economies. There is obviously something fallacious about the assumptions underpinning the EU. (Yet I'm perplexed that Varoufakis looks to Sachs and Summers for advice, which doesn't go along with his critique of austerity.) How much is the EU meant to be a true political union, even granting US, IMF, and World Bank influence, and how much merely the political-economic foundation for NATO, a military alliance system positioned to confront and challenge Russia?
That is a serious question, I think, because the EU nations are forced into an austerity framework, against their better interests, in order to support a US-inspired revival of the Cold War. Here foreign-policy goals trump that of rational international-economic organization. Yes, Greece is caught in a squeeze, as Varoufakis suggests, but how nice, I believe, if it left the eurozone (just as FDR acted at the London Economic Conference), and was followed by others--a significant improvement in their economic futures plus an important nod to detente and diminished tensions.
That is a serious question, I think, because the EU nations are forced into an austerity framework, against their better interests, in order to support a US-inspired revival of the Cold War. Here foreign-policy goals trump that of rational international-economic organization. Yes, Greece is caught in a squeeze, as Varoufakis suggests, but how nice, I believe, if it left the eurozone (just as FDR acted at the London Economic Conference), and was followed by others--a significant improvement in their economic futures plus an important nod to detente and diminished tensions.
Dr. Varoufakis has laid it out eloquently. My heart goes out to the Greek people.
7
Yanis Varoufakis almost caused Greece to drop out of the euro and continues to rant about the unfairness of it all. He sounds like a very poor loser indeed.
When Syriza came to power in Jan. 2015 the Greek economy was finally recovering somewhat, but 6 months later under the stewardship of Tsipras & Varoufakis needed yet another bailout of some 80+ bln euro(!). Both men are squarely to blame for escalating a messy situation into total chaos.
Varoufakis is a dangerous demagogue, should go back to academic life and never ever show his face in public again.
When Syriza came to power in Jan. 2015 the Greek economy was finally recovering somewhat, but 6 months later under the stewardship of Tsipras & Varoufakis needed yet another bailout of some 80+ bln euro(!). Both men are squarely to blame for escalating a messy situation into total chaos.
Varoufakis is a dangerous demagogue, should go back to academic life and never ever show his face in public again.
14
Greece might have suffered from the tragedy, but going by all the syndicated columns he has started selling in recent months, Mr Varoufakis appears to have done fabulously well out of the farce he and his cohorts engineered over past 12 months.
If it wasn't featured in NYT, I would say this piece is not worth the paper it is written on. Mr Varoufakis has had his 15 minutes of fame and perhaps, he should move on. In his desperate attempts at finger pointing, he only risks opening an investigation into his own muddled attempts to sink that leaky ship called Greece.
If it wasn't featured in NYT, I would say this piece is not worth the paper it is written on. Mr Varoufakis has had his 15 minutes of fame and perhaps, he should move on. In his desperate attempts at finger pointing, he only risks opening an investigation into his own muddled attempts to sink that leaky ship called Greece.
10
Here's a crazy thought, Mr. Varoufakis: Try dressing appropriately when you negotiate with Northern Europeans.
In every photo of the negotiations, the Greeks were wearing rumpled linen button-down shirts, without ties and typically without jackets, signaling a devil-may-care, playboy attitude.
That may be appropriate for the beach, but when you're asking for loan forgiveness, you need to signal that you're taking the situation seriously.
No surprises that the results were what they were.
In every photo of the negotiations, the Greeks were wearing rumpled linen button-down shirts, without ties and typically without jackets, signaling a devil-may-care, playboy attitude.
That may be appropriate for the beach, but when you're asking for loan forgiveness, you need to signal that you're taking the situation seriously.
No surprises that the results were what they were.
10
Forget about competing & entering into the dog eat dog world of comparative productivity, status driven consumption & banks ruling the roost. Go back to the land and rediscover your roots. Produce goat milk & cheese, olives and retsina & let the rest of the world flock to your shores to escape their humdrum lives and spend in the way that disaffected capitalistic societies do. This will allow for public hospitals & pensions for the aged.
It is time to start producing philosophers again rather than automatons.
It is time to start producing philosophers again rather than automatons.
4
I'm surprised by the vehemence and, in some instances, virulence of many of the comments regarding today's Op-Ed by Mr. Varoufakis. The Times should have screened and deleted those that were basically nothing more than unwarranted ad hominem attacks, since those posts reflect badly on the Times itself, as well as showing their writers to be woefully intolerant of opinions that differ from their own.
Other comments suggest the writers do not have the essential but simple ability to discern between verifiable fact and ideological bias. Why did so many harp on the Greece's poor record of tax collection, its general corruption, its misrepresentation of the extent of indebtedness it was first bailed out, etc., without being able to distinguish between the Syriza government (under prime minister Alex Tsipras and finance minister Mr. Varoufakis) and the government that Syriza replaced in January of this year? The Syriza government did not participate in the actions that led to the economic plight of Greece. Yet those comment-writers repeatedly blame "Greece" generally and insist it act "responsibly", when instead they should be looking at earlier governments that created the conditions from which the current bailout problems arose. Those writers' insistence is akin to claiming that a grievously injured man caused his own injuries and must therefore heal himself before he can be admitted to a hospital: how can that man comply when his injuries prevent his doing anything at all?
Other comments suggest the writers do not have the essential but simple ability to discern between verifiable fact and ideological bias. Why did so many harp on the Greece's poor record of tax collection, its general corruption, its misrepresentation of the extent of indebtedness it was first bailed out, etc., without being able to distinguish between the Syriza government (under prime minister Alex Tsipras and finance minister Mr. Varoufakis) and the government that Syriza replaced in January of this year? The Syriza government did not participate in the actions that led to the economic plight of Greece. Yet those comment-writers repeatedly blame "Greece" generally and insist it act "responsibly", when instead they should be looking at earlier governments that created the conditions from which the current bailout problems arose. Those writers' insistence is akin to claiming that a grievously injured man caused his own injuries and must therefore heal himself before he can be admitted to a hospital: how can that man comply when his injuries prevent his doing anything at all?
6
The implicit arrogance is breathtaking in its imperial hubris of what is good for Greece on its terms. The fact is that the system had been gamed with flawed financial projections, a welfare state that guaranteed a good life with low lifetime contribution and a mindset that was unwilling to accept the reality that Greeks were on the dole and yet blamed the world for their predicament.
There comes a time when everyone has to pay the piper and the earlier Greece realized it the better it will be for the future. No one is entitled to agree lunch and the sooner the world wakes up to this reality we will all be the better for it.
There comes a time when everyone has to pay the piper and the earlier Greece realized it the better it will be for the future. No one is entitled to agree lunch and the sooner the world wakes up to this reality we will all be the better for it.
5
Leave the euro. Devalue the drachma. Liberalise labor markets. Reduce regulation. Raise the retirement age. Set up an effective tax collection agency. Watch Greece prosper.
4
In short, Greeks still think Germans should work well into their 60s so Greeks can retire at 50.
The only service the author can provide humanity now is to exhort western governments not to make the same mistakes his did. Debt, welfare, lazy workers are a recipie for disaster. Once you go bankrupt you lose the right to determine your own affairs.
The only service the author can provide humanity now is to exhort western governments not to make the same mistakes his did. Debt, welfare, lazy workers are a recipie for disaster. Once you go bankrupt you lose the right to determine your own affairs.
5
Yanis, you are so right-on.
How would you like it if your salaries and pensions were cut in half, to support the banks ill-gotten gains?
Tanks, banks and IMF, perfect together.
How would you like it if your salaries and pensions were cut in half, to support the banks ill-gotten gains?
Tanks, banks and IMF, perfect together.
5
The wage that had to be cut was unrealistically high and not coupled to increases in productivity! If Somalia would have joined the € and as a consequece could borrow money on German or Dutch interest rates they could also easily obtained growth trough consumption. However once the borrowed money stops flowing they would be a third world country again. How come so many people see Greece as a victim in all of this and the Germans are evil? Germany never wanted the € in the first place but was forced by France in exchange for "allowing" reunification, while Greece actively tried to get into the € and failed the first time. Greece was a NET RECEIVER ever since they joined and are solely responsible for their own choices! As Greece produces very little of interest for other Europeans it was clear that their trade balance would suffer. Greece even imports Olive oil from Italy because its more convenient...I am sorry for all honest Greeks who just want to live a prosperous live in peace but being European doesn´t automatically entitle you to Western European living standards especially when you are a tiny country on the outskirts of the balkan and in a disadvantaged geographical position. Mr. Varoufakis also forgets that the EU was created to make war between Europeans or more precisely between France and Germany almost impossible due to their economic interdependencies. It was not created to entitle a former ottoman province to be affluent also they feel like it.
Greece can fix itself but it will be painful. The wonderful Greeks are still living as if "gaming the tax man" is the same as gaming the Man, an unknown and evil force who seems to have nothing to do with Greece itself....and this Before the EU lended money to Greece which it knew Greece could not pay back (Goldman Sachs or no).
So the Greek and Germans have both played games. A return to the drachma might be a good interim step.
So the Greek and Germans have both played games. A return to the drachma might be a good interim step.
2
Mr. Varoufakis argument makes sense, but it neglects the problems that are due to a small segment of the Greeks themselves: I am referring to the oligarchs and wealthy businessmen, who for many years have avoided paying taxes and who use their connections with government to receive large loans for companies that lose money.
The European Union should work with the Greek government to hold these powerful interests accountable.
The European Union should work with the Greek government to hold these powerful interests accountable.
3
GERMANY wants to maintain its economic hegemony over the other member states of the EU, without acknowledging fully the extent to which that hegemony reeks havoc on other nations. Financial arrangements among nations with varying economic histories, philosophies and preferences is not a one-size-fits-all venture. Germany seems either unwilling or unable to accept that reality and, it must be said with great sadness, appears willing to sacrifice the long-term well-being of the Southern European countries with the imposition of German rules. In fact, it seems that Germany wishes to occupy a "federalizing" position in Europe--to become the center of its economic power, in order to leverage the power of the benefits it believes to be the promise of following its rules, without a willingness to accept responsibility for their shortcomings. In an economically diverse world, static rules are not reflective of the reality of the markets. I don't know what the answers are, but I'm pretty certain that they are not contained in Germany's one horse and pony show.
2
One must keep in mind that the opinion of Mr. Varoufakis on the overlong arguments between Greece and the Euro-Zone countries is only his own. In his public appearance as Finance Minister, his dress resembled that of either a boxer or a night-club bouncer. After his resignation, there were photos published of him with Mrs. Varoufakis on a motorcycle, where he looked like a Batman or Superman rescuing a Beauty. Whatever are the political or academic aspirations of Mr. Varoufakis, I wish him peace of mind.
Leaving aside that Greece lied about the state of its finances to become part of the EU and leaving aside the fact that 70% of taxes go uncollected, the problem is that generations of Greeks have retired at age 50, some even earlier, on higher average public pensions than Americans receive from Social Security.
Not a little higher, a lot higher ($1800 Greece, $1300 US).
As long as the Greek attitude is 'everything is someone else's fault' added to 'everything is free', lenders are throwing good money after bad.
Not a little higher, a lot higher ($1800 Greece, $1300 US).
As long as the Greek attitude is 'everything is someone else's fault' added to 'everything is free', lenders are throwing good money after bad.
8
Perhaps all of Greece should pack their bags, catch a train to Germany, and request asylum. You might get a better deal that way.....
3
There is one sentence about setting up an independent IRS like authority, but no further discussion about the massive levels of tax avoidance and the resulting tiny fraction of taxes collected by the Greek government. If Greece could never collect taxes, how could they possibly be entrusted to set up something like the IRS? What is stopping them from pursuing massive and drastic tax reform on their own right now -- aren't these crises motivation enough for the Greek government to do that? That is one point I really can't get over and I fail to understand how this problem could persist and be ignored for so long.
3
Extraordinary. This is exactly what Greece and what Europe needs. Mr. Varoufakis is exactly right in stating (the obvious) that the current Greek "third" bailout is not the solution to current problems. Without significant debt restructuring (aka haircuts), there is no way the Greek economy can become viable. Regarding Europe, also on the mark. How can people tolerate the current profoundly anti-democratic monetary union that imposes dogmatic orthodoxy to 330 million people without any regard to anyone's well-being except that of a minor German right-wing elite?
And Mr. Varoufakis might look "heterodox" to Schauble and a few other Euro-bureaucrats just because he is saying the hard truths that need to be said. If more of us where brave enough, and that includes the media, western powers, and the people in general, we would all be advancing and discussing Varofakis ideas which are exactly part of the way to go forward.
And Mr. Varoufakis might look "heterodox" to Schauble and a few other Euro-bureaucrats just because he is saying the hard truths that need to be said. If more of us where brave enough, and that includes the media, western powers, and the people in general, we would all be advancing and discussing Varofakis ideas which are exactly part of the way to go forward.
3
Eurozone finance misters were 18 to 1 so not really a tiny right wing elite?! The Netherlands or Finland among others had more extreme positions than Schäuble! I also don´t comment on US domestic issues if I don´t have a clue of whats going on. Other members also depend on their electorate...some smaller countries underwent "Austerity" which is a anglo saxon invention with a negative connotation but the diffrence is that they first underwent that to meet the € zone criteria..good luck explaining to them that Greece "deserves" a bailout when their living standard is way below Greeces?
Even a 100% haircut wouldn´t help much as the structural problems are overwhelming...my advice chek google earth for Athens and check for swimming pools and than compare that number to the people who actually have license for it and pay taxes for it....if it wouldnt be so sad its simply hilarious...why should anyone listen to the most corrupt country in the western world were even Greeks themselves tell you that they don´t trust their government or other Greeks...in the end they are extremely selfish with an entitlement mentality demanding selfnessless form others? Talk about delusion...
Even a 100% haircut wouldn´t help much as the structural problems are overwhelming...my advice chek google earth for Athens and check for swimming pools and than compare that number to the people who actually have license for it and pay taxes for it....if it wouldnt be so sad its simply hilarious...why should anyone listen to the most corrupt country in the western world were even Greeks themselves tell you that they don´t trust their government or other Greeks...in the end they are extremely selfish with an entitlement mentality demanding selfnessless form others? Talk about delusion...
What complete nonsense. We might argue about how best to have dealt with the "Greek crisis" in latter years but the responsibility for the crisis lies squarely with the Greeks. Decades of a corrupt, venal, nepotistic bureaucracy joined at the hip with a political class of the same ilk (irrespective of party or "ideology"), not Angela Merkel, led them to this pass. Germany has amongst the most robust social welfare states in Europe so it's not a matter of " creeping socialism" or profligate expenditure on public infrastructure which is to blame in Greece's case. No, it's there inability or unwillingness to rain in government as gravy train for the corrupt and/or incompetent.
9
As a Greek, I'm glad that my country is a matter of discussion about its financial problems today. Mr. V. tried to show Europeans that the medicine given to our economy is wrong, killing the patient. But the EU authorities are dominated by obsessions about Greeks, media, specially the German ones tried hard to convince the EU audience that Greece is a failed-state and Greek citizens completely corrupted and lazy. This is not true: Greek work more than Germans in private sector.The public sector has problems as the politicians used for decades of years to build clientelism and some of its structure is deficient and corrupted, more than some EU but less than others. Also tax evasion is an issue not solved, specially by the richest and not well controlled private sector entrepreneurs. EU and euro brought us a welfare in the first years, but our economy was undermined, factories fled to Balkans (lower taxes) and imports of cheap agricultural products, machinery etc replaced the local ones. Deficit more than 15% in 2009, and the economy was too vulnerable to find liquidity from markets. So G.A. Papandreou voted the first MoU.The recession started and continued after the second Memorandum.So extreme debt, 175% debt,25%+ unemployment (65 to youngsters),closed enterprises,suicides,poverty. SYRIZA party tried but didn't managed to convince the Europeans,the Germans specially, who have obsession and religious faith to austerity.So we are. Mr. V. made mistakes but he is write in many.
2
The professors was in possession of a detailed plan for eliminating all paper euro currency and replace it with an equal value digital e-Euro. All transaction would have taken place electronically with the consequential benefits listed below:
The exclusive use of the e-Euro would bring about an unprecedented transparency in transactions, which would in turn bring about numerous benefits, such as:
• The elimination of the massive tax evasion, which has traditionally been one of the most difficult issues to tackle in the country by all governments;
• the ending of the vast governmental corruption "greased" by kickbacks paid inside or outside of Greece (i.e. Siemens scandal);
• the eradication of other societal endemics, such as the underground economy (estimated at 25% of GDP), illegal immigration, undocumented labor, drug trafficking, and even robberies;
• the termination of the practice whereby imported products and services were over-invoiced, as a means to funnel unreported profits to bank accounts abroad.
Naturally, in parallel with the use of the e-Euro, Greece would also need business friendly structural reforms aimed not only at the elimination of over-regulation and bureaucracy, but also at attracting foreign investment capital, through generous tax incentives, for the creation of new businesses, leading the way towards growth with low unemployment and a rapidly decreasing national and private debt.
The professor missed the only chance to save Greece.
The exclusive use of the e-Euro would bring about an unprecedented transparency in transactions, which would in turn bring about numerous benefits, such as:
• The elimination of the massive tax evasion, which has traditionally been one of the most difficult issues to tackle in the country by all governments;
• the ending of the vast governmental corruption "greased" by kickbacks paid inside or outside of Greece (i.e. Siemens scandal);
• the eradication of other societal endemics, such as the underground economy (estimated at 25% of GDP), illegal immigration, undocumented labor, drug trafficking, and even robberies;
• the termination of the practice whereby imported products and services were over-invoiced, as a means to funnel unreported profits to bank accounts abroad.
Naturally, in parallel with the use of the e-Euro, Greece would also need business friendly structural reforms aimed not only at the elimination of over-regulation and bureaucracy, but also at attracting foreign investment capital, through generous tax incentives, for the creation of new businesses, leading the way towards growth with low unemployment and a rapidly decreasing national and private debt.
The professor missed the only chance to save Greece.
1
Germany's insistence on not restructuring the Greek debt indicated to me that the deal imposed by the Germans was not a financially viable one but a politically inspired deal that was going to "teach Greece and the spendthrift Greek people a lesson."
No mention by the Germans in shoving this horrible deal down the Greeks throats was made of the fact that Germany's economic miracle is due in no part to the Euro currency being lower than what a corresponding Deutschmark only currency would be which would make German exports uncompetitive.
So - now Germany tries to play the "nice guy" role after destroying a fellow European nation and a NATO member. Germany instead decided that it will help the "refugees" (which are not refugees as they have passed through the first "safe" state they entered) and is going to be destroyed by this largesse, to the detriment of its own citizens. I can only say to them - you reap what you sow - and deserve it.
No mention by the Germans in shoving this horrible deal down the Greeks throats was made of the fact that Germany's economic miracle is due in no part to the Euro currency being lower than what a corresponding Deutschmark only currency would be which would make German exports uncompetitive.
So - now Germany tries to play the "nice guy" role after destroying a fellow European nation and a NATO member. Germany instead decided that it will help the "refugees" (which are not refugees as they have passed through the first "safe" state they entered) and is going to be destroyed by this largesse, to the detriment of its own citizens. I can only say to them - you reap what you sow - and deserve it.
2
This is a disappointing article. I expected more, and better, from the former Finance Minister. There is no explanation whatsoever here of what led Greece to this dire situation. How come this is a mostly Greek tragedy and not that of other European economies?
7
"n the meantime, I shall continue to promote our plan for Greece’s recovery as a true, viable alternative to the troika’s impossible program."
My best wishes but as studied as you are in history you'll have noted that capitalist controlled and authoritarian interests have been scuttling aspirations of democracy, including those economic, since within months of the institution of the U.S. Constitution. Chief in the crusade have been ostensible democracies of western Europe and the western hemisphere. Greece is just the latest.
.
My best wishes but as studied as you are in history you'll have noted that capitalist controlled and authoritarian interests have been scuttling aspirations of democracy, including those economic, since within months of the institution of the U.S. Constitution. Chief in the crusade have been ostensible democracies of western Europe and the western hemisphere. Greece is just the latest.
.
2
To redouble the point :
1. You have to get to the bottom of the source of the problem and exactly who did what to land Greece in this mess. Greeks (obviously) would have been complicit in getting into a bad deal. Those who got away with lying cannot be allowed to get away with murder too.
2. If European integration is flawed, then the author's points would be a good indicator of where the problems were. For all German generosity in the current immigration crisis ( which will also change German perceptions ), any fundamental flaw in their thinking must be exposed and "rectified".
Let's not blame one side alone. It takes 2 to tango and 20 to chorus. Incompetence is forgiveable, criminality is not, when you can separate the two.
1. You have to get to the bottom of the source of the problem and exactly who did what to land Greece in this mess. Greeks (obviously) would have been complicit in getting into a bad deal. Those who got away with lying cannot be allowed to get away with murder too.
2. If European integration is flawed, then the author's points would be a good indicator of where the problems were. For all German generosity in the current immigration crisis ( which will also change German perceptions ), any fundamental flaw in their thinking must be exposed and "rectified".
Let's not blame one side alone. It takes 2 to tango and 20 to chorus. Incompetence is forgiveable, criminality is not, when you can separate the two.
The Troika's policies toward Greece have been harsh, unforgiving and counter-poductive. The Greek economy is continuing to shrink; small businesses – its lifeblood – are closing; and highly trained people are leaving. After five years, you'd think a lesson could be learned: it's not working.
What’s more, the proposal by many well-intentioned people, including Varoufakis, himself, that Greece leave the Euro is unrealistic. How will the Greeks buy essential food, fuel and medicines from abroad with an almost worthless new drachma, without massive, continuing, "humanitarian" aid from the EU? Such aid will surely come with many of the same strings attached. Greece will still be subject to economic suzerainty of Germany, their independence an illusion.
With a gun to their heads, the Greeks agreed to sell off public assets, a demand of the Troika. Recently, however, it has come to light that high officials in the Troika and Euro Group are complicit with, or at least are turning a blind eye to, the systematic looting of Greece’s public assets by well-connected private individuals, at fire sale prices. The assets include airports, prime beachfront property and a modern municipal water works, often going without any competitive bidding. See this devastating documentary, including an interview with Paul Krugman: https://youtu.be/BLB3uu1IXM0
Those readers critical of Greece, have no idea of the predations committed against this small country in the name of "following the rules."
What’s more, the proposal by many well-intentioned people, including Varoufakis, himself, that Greece leave the Euro is unrealistic. How will the Greeks buy essential food, fuel and medicines from abroad with an almost worthless new drachma, without massive, continuing, "humanitarian" aid from the EU? Such aid will surely come with many of the same strings attached. Greece will still be subject to economic suzerainty of Germany, their independence an illusion.
With a gun to their heads, the Greeks agreed to sell off public assets, a demand of the Troika. Recently, however, it has come to light that high officials in the Troika and Euro Group are complicit with, or at least are turning a blind eye to, the systematic looting of Greece’s public assets by well-connected private individuals, at fire sale prices. The assets include airports, prime beachfront property and a modern municipal water works, often going without any competitive bidding. See this devastating documentary, including an interview with Paul Krugman: https://youtu.be/BLB3uu1IXM0
Those readers critical of Greece, have no idea of the predations committed against this small country in the name of "following the rules."
12
Doesn't Varoufakis explicitly distance himself from any simplistic Grexit plan here, presumably for much the same reasons you outline? (Varoufakis is a longtime critic of the EU, but has taken pains to differentiate Greece's pre-adoption considerations from its post-adoption "best next step" considerations.)
Varoufakis here is arguing the next battle should be to fix the EU, not exit it. Which the other EU members should pay heed to because Greece is just the canary in the coal mine. The EU was built with lots and lots of ALL The Wrong Kinds of Rules. They've tried (quietly) to relax much of them. (Like the hushed relaxation to the inability of virtually every EU member nation to consistently deliver results required by their own Stability and Growth Pact. ) Varoufakis here is promoting a rebuild of the EU.
Varoufakis here is arguing the next battle should be to fix the EU, not exit it. Which the other EU members should pay heed to because Greece is just the canary in the coal mine. The EU was built with lots and lots of ALL The Wrong Kinds of Rules. They've tried (quietly) to relax much of them. (Like the hushed relaxation to the inability of virtually every EU member nation to consistently deliver results required by their own Stability and Growth Pact. ) Varoufakis here is promoting a rebuild of the EU.
How will Greece buy fuel and food and medicines you ask? The same way every other country on this planet with their own currency does it.
Say country A is twice as rich as country B. If then the economy of country A falters by 50% and afterwards, they have the same economic power as country B, what do people say. Of course - poor country A. They have it so hard. And of course no one cares that everyone in B lived like this the whole time.
Humans can be very weird. They will pity the millionaire that falls to the middle class more than the dish-washer that can barely make ends meet ...
Say country A is twice as rich as country B. If then the economy of country A falters by 50% and afterwards, they have the same economic power as country B, what do people say. Of course - poor country A. They have it so hard. And of course no one cares that everyone in B lived like this the whole time.
Humans can be very weird. They will pity the millionaire that falls to the middle class more than the dish-washer that can barely make ends meet ...
I see that the NYT heralds Varoufakis's Op-Ed at the top of the page with a photo of former PM Alexis Tsirpas, which to me rather tends to emblematize the sheer ignorance & arrogance + solipsistic mind-set endemic to so many complacent Americans, as so tellingly reflected here in so many of the comments (48 at the latest count). I write from a location right next door to a number of the Greek islands (Lesbos, Chios, Samos, etc.), not from somewhere on the western side of the Atlantic, and wish here to do no more than implore the serious- and conscientiously-minded to watch on YouTube the devastating Troika documentary of Harald Schumann -- to which, in his concern, Mr. Ron Cohen has thoughtfully provided a link above -- before awarding themselves the luxury of hatching & advocating opinions about the ongoing Greek (< EU) catastrophe.
1
Hey, Greece.
Get rid of your socialist welfare state, cut out the generous early retirement pensions, and pay your taxes. You'll do fine.
Get rid of your socialist welfare state, cut out the generous early retirement pensions, and pay your taxes. You'll do fine.
30
Surprising you don't recommend Tax cuts as the solution to everything. Works like a champ in Texas — as long as oil is $100 a barrel, yes?
1
A center-right government got Greece into this mess.
It's a little more complicated than that. I really don't think you understand the depth of the crisis. Besides which you cannot just cut off people with no money and no health care when they spent their working lives paying in to the system to get them. Things are exceptionally bad in Greece, Trump-like one liners don't solve problems of this magnitude.
1
If Greece had not elected inept politicians in the past maybe they would not be today in the need to have foreign lending institutions telling them what to do.
You cannot elect politicians that make unrealistic promises that later prove to be unreachable. Let the Greeks who voted for these government now tighten their belt and suffer the consequences of their reckless behavior. Maybe this hard medicine is the only positive thing to emerge from their predicament.
You cannot elect politicians that make unrealistic promises that later prove to be unreachable. Let the Greeks who voted for these government now tighten their belt and suffer the consequences of their reckless behavior. Maybe this hard medicine is the only positive thing to emerge from their predicament.
15
Perhaps Greece can find some Mexicans hiding in the closets with which they can get Mexico to pay Greece for their repatriation. Perhaps Greece should get on the Illegal Mexican Currancy Standard like we are planning on doing here in the U.S.
Nah, that would be irresponsible political rhetoric and the citizens are smarter than that...
Nah, that would be irresponsible political rhetoric and the citizens are smarter than that...
The former Greek government was corrupt, and the population encouraged to retire early with a financial backup which wasn't there. The public paid little attention until it was too late.
I fail to comprehend why Greece not being a member of the EU would be a great tragedy. Ireland was able to bite the bullet. You either obey the rules, or you don't, not that the U.S. presents a useful example.
Jane Taras Carlson
I fail to comprehend why Greece not being a member of the EU would be a great tragedy. Ireland was able to bite the bullet. You either obey the rules, or you don't, not that the U.S. presents a useful example.
Jane Taras Carlson
12
More "blame the lender" rhetoric.
23
Is it the lender or, is it the loan shark?
Meanwhile, Greek labor is still uncompetitive with German labor or even Polish labor. The actions taken haven't closed that estimated 35% gap. [basis of calculation -- productivity adjusted total cost of employment per worker per year]. Because of this, employers who are capable of leaving Greece have done so or will do so in the near future.
What does it take to improve productive output per worker-year? Successive Greek governments had not successfully addressed this question since Greece came into being in 1821 [hence the nine devaluations since] and, as I read the current pacts, still has not. Nothing will be different five years hence.
I can not recommend any investment in Greek anything at the present time except to the boldest bottom fishers and breakup artists.
What is required is either periodic devaluation or culture breaking. and culture breaking is extremely difficult.
What does it take to improve productive output per worker-year? Successive Greek governments had not successfully addressed this question since Greece came into being in 1821 [hence the nine devaluations since] and, as I read the current pacts, still has not. Nothing will be different five years hence.
I can not recommend any investment in Greek anything at the present time except to the boldest bottom fishers and breakup artists.
What is required is either periodic devaluation or culture breaking. and culture breaking is extremely difficult.
12
Between 1996 and 2010, German wages in 2014 constant dollars adjusted for PPP (according to stats.oecd.com) grew less than 4%, while Greek wages grew roughly 26%. German real wages have been flat for more than two decades, and it remains one of the world's most efficient economies. Given that the EU itself estimated the euro resulted in a 15% competitiveness advantage for Germany, and a similar disadvantage for Greece, Greece would have to exceed even South Korea's incredible performance in improving economic efficiency just to keep up with Germany.
In other words, as long as Germany continues to aggressively pursue its trade advantages in and via the Eurozone, Greece will never be able to achieve the kind of improvements in competitiveness needed to recover to some kind of new, albeit lower, GDP growth trend.
In open economies advantages from currency devaluations are fleeting and damaging, as one side retaliates against its competitor. For Germany, however, the Eurozone is a closed economy, and having established a large currency devaluation in comparison to its neighboring trade partners, it has no risk of retaliatory devaluations. Germany effectively controls their monetary policy.
Germany, in tying its currency to a basket of smaller economies, has essentially engineered a Reverse Renminbi, and having secured the largest portion of the euro windfall for itself, now presses its neighbors into deflation through its pursuit of total trade advantage.
In other words, as long as Germany continues to aggressively pursue its trade advantages in and via the Eurozone, Greece will never be able to achieve the kind of improvements in competitiveness needed to recover to some kind of new, albeit lower, GDP growth trend.
In open economies advantages from currency devaluations are fleeting and damaging, as one side retaliates against its competitor. For Germany, however, the Eurozone is a closed economy, and having established a large currency devaluation in comparison to its neighboring trade partners, it has no risk of retaliatory devaluations. Germany effectively controls their monetary policy.
Germany, in tying its currency to a basket of smaller economies, has essentially engineered a Reverse Renminbi, and having secured the largest portion of the euro windfall for itself, now presses its neighbors into deflation through its pursuit of total trade advantage.
What does it take? Motivation, for one thing. Greeks have had it so easy, for such a long time, that they may have forgotten how to put their shoulders to the grindstone. Furthermore, diversifying their markets would help. That will take a number of innovators. Now, all they seem to do is whine and blame others, rather than getting busy with a plan.
This is true and a more damning indictment of socialism is hard to find.
Requiring a 3.5% surplus in any country is absolutely unsustainable , and in the case of the economic situation in Greece such a demand is ludicrous.
23
Not ONE mention of how Greece will generate revenue (collect taxes) enough to pay off their debt. Even if this tranche of debt is 100% forgiven, Greece does not have a tangible system of taxation that can even meet their on-going expenses.
Mr. Varoufakis knows all too well the $miillions of Euros that have poured into Swiss bank accounts and other off-shore havens from Greek citizens and businesses since the Drachma was dropped and the Euro adopted. This is the exact reason why the Greek government finance officials (many of whom are close freinds of Varoufakis) went into derivative contracts with Goldman Sachs to push current debt out ten to 15 years or order to "balance" the budget and thus enter the Euro.
Greek middle class and poor are thoroughly robbed by the likes of Varoufakis who want them to think the problem is with Germany, France or some other foreign power. When all the time it lies with thier own politicians and wealthy elite who do NOT pay their taxes, take their Euros and run, and in turn rob this poor country of a stable future.
Mr. Varoufakis knows all too well the $miillions of Euros that have poured into Swiss bank accounts and other off-shore havens from Greek citizens and businesses since the Drachma was dropped and the Euro adopted. This is the exact reason why the Greek government finance officials (many of whom are close freinds of Varoufakis) went into derivative contracts with Goldman Sachs to push current debt out ten to 15 years or order to "balance" the budget and thus enter the Euro.
Greek middle class and poor are thoroughly robbed by the likes of Varoufakis who want them to think the problem is with Germany, France or some other foreign power. When all the time it lies with thier own politicians and wealthy elite who do NOT pay their taxes, take their Euros and run, and in turn rob this poor country of a stable future.
49
1) Mr. Varoufakis writes, "We also planned to set up a 'bad bank' that would use financial engineering techniques to clear the Greek commercial banks’ mountain of nonperforming loans."
Ah, yes, "financial engineering techniques"! But absolutely no mention of Greece reforming and empowering desperately-needed revenue collection while combating the widespread attitude that "only stupid people pay taxes."
2) Any plan devised with the input of the former U.S. Treasury Secretary -- and now thoroughly discredited economist -- Larry Summers is not worth the old drachmas it's scribbled on.
Ah, yes, "financial engineering techniques"! But absolutely no mention of Greece reforming and empowering desperately-needed revenue collection while combating the widespread attitude that "only stupid people pay taxes."
2) Any plan devised with the input of the former U.S. Treasury Secretary -- and now thoroughly discredited economist -- Larry Summers is not worth the old drachmas it's scribbled on.
28
Wouldn't it be grand if money disappeared overnight. People would just work to contribute to humanities sustainable survival. No one would want to accumulate wealth, greed would be an evolutionary dead end. No one would want to benefit from the fruits of another's labor. But then would we still be human? I hate to be negative, but most people think the Greeks are Europe welfare queens. Prove us wrong.
3
This column is most notable for its absolute refusal to concede he made any mistakes in either the substance of his proposals or his grandstanding tone.
Germany and the EU are not blameless, but as long as Greece allows oil tanker barons and the rest of its 1% to evade taxes and bribes voters with unsustainable government jobs and benefits, why should anyone loan them money?
Germany and the EU are not blameless, but as long as Greece allows oil tanker barons and the rest of its 1% to evade taxes and bribes voters with unsustainable government jobs and benefits, why should anyone loan them money?
40
70% of Greek taxes go uncollected.
1
This gentleman seems to be oblivious of fundamental issue -- the duties one has when one talks of his/her rights! Where were the follow-ups on Greece's duties when she took all these debts? Were they (the Greeks) expecting these debts to be forgiven when the income from these "loans/debts" were crucial for the livelihoods of people in member countries of the EU? Simply stated, Greece, like any other party too often only talking of "rights" must realize that rights and duties are two sides of the same coin -- one does --or cannot exist without the other. Sooner Greece begins walking the walk, the better it is!
59
Not all of Greece's problems originate from EU membership, but the treatments imposed by the EU to remedy these ills are bizarre, irrational, and dangerous. For ex. while EU administrators insist Greece institute reforms to eliminate corruption and tax avoidance, they imposed govt spending constraints hindering Greek government's ability to implement the government programs/structures necessary to accomplish these reforms. While EU administrators insist Greece "deregulates" its mom and pop bakeries and other such markets, the truly labyrinthine thicket of boards, councils, ministries and agencies dictating Greece's nat'l government and economy is dizzying! There's the EU, the European Commission, the European Council, the European Central Bank, the European Stability Mechanism, & the IMF, which taken together lock-in and maximize inflexibility plus damagingly procyclical response when dealing with economic crises.
And the euro itself is a ridiculously designed and constrained currency. To paraphrase a metaphor given by Warren Mosler, the self-imposed constraints the EU's instituted on its own currency are as nonsensical as putting a big bag over your head to race in the 100m. What US conservatives who think Greece's problems are a harbinger for the US don't get is that Greece status in the EU has reduced to a status akin to PA or OH but WORSE, with no sovereignty of its currency plus (unlike PA or OH) Greece is compelled to fund guarantees of its own private banking system!
And the euro itself is a ridiculously designed and constrained currency. To paraphrase a metaphor given by Warren Mosler, the self-imposed constraints the EU's instituted on its own currency are as nonsensical as putting a big bag over your head to race in the 100m. What US conservatives who think Greece's problems are a harbinger for the US don't get is that Greece status in the EU has reduced to a status akin to PA or OH but WORSE, with no sovereignty of its currency plus (unlike PA or OH) Greece is compelled to fund guarantees of its own private banking system!
36
So much Greek myth has become political factoid. Truthiness abounds. Think about this all you commentators: just how did Greece manage to mislead all of the European elite when you folks so easily see what you believe are the true facts?
12
The Mr Varoufakis walked to sell an outdated cooked on its public debt and away their tax responsabilities with Europe and the international creditors World owes much and apreciate the work of the Greek authorities and the population of Greece to help the refugees of the world Good Luck Greece
1
Mr. Varoufakis: How Europe Crushed Greece. Really?
Greece's eurozone membership was the high point achieved by the political leadership. A tourism-based economy was sharing a common currency along with advanced-wealthy Germany, France, Italy and Netherlands. Everything was fine except for one small detail, the state of a backward economy.
The ruling political elite continued to run the country as business as usual. Namely, an over generous welfare system, a corrupt public patronage system and a backward third world-like economy. The end result, an unsustainable public debt brought about by the 2009 financial crisis.
Mr. Varoufakis -- and fellow politicians -- may still think (erroneously) eurozone membership is an inherited right fore being an European country. He misses, however, a fundamental point about economic integration.
Membership of a rich man's club does not entitle Greece to benefit from other country's wealth and prosperity for free. Greeks have to earn it. This is the ultimate lesson from the current debt crisis.
Greece's eurozone membership was the high point achieved by the political leadership. A tourism-based economy was sharing a common currency along with advanced-wealthy Germany, France, Italy and Netherlands. Everything was fine except for one small detail, the state of a backward economy.
The ruling political elite continued to run the country as business as usual. Namely, an over generous welfare system, a corrupt public patronage system and a backward third world-like economy. The end result, an unsustainable public debt brought about by the 2009 financial crisis.
Mr. Varoufakis -- and fellow politicians -- may still think (erroneously) eurozone membership is an inherited right fore being an European country. He misses, however, a fundamental point about economic integration.
Membership of a rich man's club does not entitle Greece to benefit from other country's wealth and prosperity for free. Greeks have to earn it. This is the ultimate lesson from the current debt crisis.
113
Small detail with your analysis: public debt remained stable as a proportion of GDP until 2009 when Greek GDP fell precipitously, though it had been trending lower since its 2003/2004 highs after joining the euro in 2001.
Problems with Greek competitiveness - your "backward third world-like economy" (an account of Greece's economy with which the OECD disagrees) - were exacerbated by Greece's membership in the Eurozone, falling from 67 of 144 in 2010 to 96th after five years of troika reform.
Greek unit labor costs actually achieved parity with Germany's from 2010 to 2011, which rose much faster than the OECD average while Germany's remained flat from reunification through roughly 2008.
Greece's current account deficit widened significantly after joining the euro, while Germany's surplus soared. The primary result of the Greek depression has been to reduce this deficit by destroying demand.
The cost of joining the eurozone is the same for everyone outside of Germany, including Spain, Italy, and soon enough France and even quite possibly the Netherlands. All these nations must adjust to Germany's productivity, since its influence over the European System of Central Banks, and particularly the ECB and the Bundesbank allow it to continue to devalue in real terms.
I suggest you acquaint yourself with the basic facts before you consign a nation of eleven million to the historical dustbin of unearned wealth and prosperity. Next thing we'll hear from you is how lazy they are.
Problems with Greek competitiveness - your "backward third world-like economy" (an account of Greece's economy with which the OECD disagrees) - were exacerbated by Greece's membership in the Eurozone, falling from 67 of 144 in 2010 to 96th after five years of troika reform.
Greek unit labor costs actually achieved parity with Germany's from 2010 to 2011, which rose much faster than the OECD average while Germany's remained flat from reunification through roughly 2008.
Greece's current account deficit widened significantly after joining the euro, while Germany's surplus soared. The primary result of the Greek depression has been to reduce this deficit by destroying demand.
The cost of joining the eurozone is the same for everyone outside of Germany, including Spain, Italy, and soon enough France and even quite possibly the Netherlands. All these nations must adjust to Germany's productivity, since its influence over the European System of Central Banks, and particularly the ECB and the Bundesbank allow it to continue to devalue in real terms.
I suggest you acquaint yourself with the basic facts before you consign a nation of eleven million to the historical dustbin of unearned wealth and prosperity. Next thing we'll hear from you is how lazy they are.
15
Let's see, Mr. Nogueira, your state of South Carolina is a member of a rich man's club led by New York, California, Washington, Illinois, and other wealth-producing states while your member depends on subsidies from those states in the form of large military employment and expenditure, Social Security payments, farm subsidies, and so on, and its citizens enjoy a lower standard of living because your employers pay less due to lack of unions. But you HATE Greece for trying to get the same benefits.
3
Amen, The loss of Greece from the Euro zone will not have the dire predictions many have made. Greece has humiliated itself due to the crooked government and the welfare mentality of the population.
Cut the cord and let them fend for themselves.
Cut the cord and let them fend for themselves.
2
Greece's rich and powerful, like the elites everywhere, "crushed Greece", because as countless man/woman in the street quotes in this paper indicate Greek business owners and professionals not on salary cheat and do not pay owed taxes. This criminal elite role modeling then infects the rest of the society as well. Obviously when not enough money goes into government treasuries this also causes deficits! But the rich and powerful, and their bought and paid for media, skillfully distract us from this reality by arranging the public discussion to just be about cuts to sympathetic government programs, cuts that are most often offered by the same criminal elites as the only solution to reducing deficits. Which means the same dysfunctional status quo is continued and so yet more and more loans and bailouts and debt forgiveness and screaming and yelling about being "victims" of it all go on - probably forever.
21
The issue is Greeks were reluctant to do anything...and time just ran out. For a specific major economic activity, I contacts five major American Greek groups and they did not care...hence the issues. But it is changing really well now...for the better from Greece side. Thank you all.
Thank you for your profound insight into the ham fisted idiocy of the so called troika.
17
A significant achievement by V.&co. was the banning of the term 'troika':)!
1
Greece lied about its financial situation when it joined the Euro zone (with Goldman-Sachs' help.)
Beyond that, with no true political union in Europe, the Euro was a bad idea from the start. (Good for Germany, because it gets to sell its goods abroad more cheaply than if it still used the Mark, but bad for monetary and fiscal policy in less developed countries.)
Now with Greek insolvency, the EU has presented an aid plan, which Greece can never pay back. Austerity with a 25% unemployment rate is no solution. (In 1933, the US had a 25% unemployment rate because of Republican laissez-faire austerity policies. “New Deal” spending would reduce the rate to 15% by at least 1940; unfortunately, WWII did the rest.)
Though the Germans got a “haircut” in 1953 on their accumulated debt (as they had in the 20’s/30’s), they were not interested in any similar haircut for Greece. (Marshall Plan money the Germans got after the war, and the lack of reparations they were required to pay to countries like Greece under the terms of the 1953 haircut are additional benefits they received then.)
The Greeks and the Germans are no angels in any of this. Europe has just made an economic mess of itself.
At this point, Greece would be better off back with the Drachma, and handling its own fiscal and monetary affairs (like Russia and Argentina have had to do with their debt). The current situation is untenable, for both the borrower and the lenders.
Beyond that, with no true political union in Europe, the Euro was a bad idea from the start. (Good for Germany, because it gets to sell its goods abroad more cheaply than if it still used the Mark, but bad for monetary and fiscal policy in less developed countries.)
Now with Greek insolvency, the EU has presented an aid plan, which Greece can never pay back. Austerity with a 25% unemployment rate is no solution. (In 1933, the US had a 25% unemployment rate because of Republican laissez-faire austerity policies. “New Deal” spending would reduce the rate to 15% by at least 1940; unfortunately, WWII did the rest.)
Though the Germans got a “haircut” in 1953 on their accumulated debt (as they had in the 20’s/30’s), they were not interested in any similar haircut for Greece. (Marshall Plan money the Germans got after the war, and the lack of reparations they were required to pay to countries like Greece under the terms of the 1953 haircut are additional benefits they received then.)
The Greeks and the Germans are no angels in any of this. Europe has just made an economic mess of itself.
At this point, Greece would be better off back with the Drachma, and handling its own fiscal and monetary affairs (like Russia and Argentina have had to do with their debt). The current situation is untenable, for both the borrower and the lenders.
111
Excuse me, but Greece recieved two bailouts. Sometimes its good to read up on things again.
2010–2014 !
"On 2 May 2010, the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF), later nicknamed the Troika, responded by launching a €110 billion bailout loan to rescue Greece from sovereign default and cover its financial needs throughout May 2010 until June 2013, conditional on implementation of austerity measures, structural reforms, and privatization of government assets.[76] A year later, a worsened recession along with a delayed implementation by the Greek government of the agreed conditions in the bailout programme revealed the need for Greece to receive a second bailout worth €130 billion (including a bank recapitalization package worth €48bn), while all private creditors holding Greek government bonds were required at the same time to sign a deal accepting extended maturities, lower interest rates, and a 53.5% face value loss.[77]
The second bailout programme was finally ratified by all parties in February 2012 ..." ps. By all parties. All Greek leaders until Tsipras always pledged to repay "every cent".
https://en.wikipedia.org/wiki/Greek_government-debt_crisis#2010.E2.80.93...
2010–2014 !
"On 2 May 2010, the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF), later nicknamed the Troika, responded by launching a €110 billion bailout loan to rescue Greece from sovereign default and cover its financial needs throughout May 2010 until June 2013, conditional on implementation of austerity measures, structural reforms, and privatization of government assets.[76] A year later, a worsened recession along with a delayed implementation by the Greek government of the agreed conditions in the bailout programme revealed the need for Greece to receive a second bailout worth €130 billion (including a bank recapitalization package worth €48bn), while all private creditors holding Greek government bonds were required at the same time to sign a deal accepting extended maturities, lower interest rates, and a 53.5% face value loss.[77]
The second bailout programme was finally ratified by all parties in February 2012 ..." ps. By all parties. All Greek leaders until Tsipras always pledged to repay "every cent".
https://en.wikipedia.org/wiki/Greek_government-debt_crisis#2010.E2.80.93...
1
Leaving the Eurozone and going back to the Drachma would be a huge mistake.
Since at least 75 per cent of the Greek people want to stay in the Eurozone,it would lead to civil unrest and worse.
Since at least 75 per cent of the Greek people want to stay in the Eurozone,it would lead to civil unrest and worse.
What are you talking about? Greece received debt relief, totaling 50% of their debt already. The debt relief for Germany in 1953 was mostly for interest that had not been paid the troubles of the Great Depression. The Principal wasn't cut. Greece on the other hand had just received the biggest debt cut a nation ever had. Longer repayment periods and lower interest was also already granted. But nothing is ever enough for them.
The problem of the debt is not the repayment, which can of course be refinanced through either private means or the EU.
Greece wants debt relief, so that they can start borrowing again. Without debt relief, they are excluded from such possibilities. But new debt is precisely what Greece should not have. The Eurozone did not accept the last haircut, just so that the next private debt spiral can start anew, with another haircut again just over the horizon.
The problem of the debt is not the repayment, which can of course be refinanced through either private means or the EU.
Greece wants debt relief, so that they can start borrowing again. Without debt relief, they are excluded from such possibilities. But new debt is precisely what Greece should not have. The Eurozone did not accept the last haircut, just so that the next private debt spiral can start anew, with another haircut again just over the horizon.
The divergence between Germany, on the one hand, and France and Italy, on the other, has been hinted at in various analyses. The existing Euro system does represent the rule of bankers, enforced by central bank control of the currency and pliable elected officials. As I observed over a long career representing debtors and creditors in big cases, it is useless to expect a realistic evaluation of the debtor's ability to repay, and a rational restructuring of debt, until the personnel responsible for making the ill-advised loans are no longer the decision-makers (i.e. fired, retired or escaped to greener pastures). The European banks, knowing that the Greeks could not repay, pressured their governments to bail them out in stages starting in 2010, and they have succeeded in getting out. The politicians who effected this bailout don't want to now tell the voters that they sold them out for the benefit of the banks; rather they excoriate the Greeks as deadbeats, and refuse to deal with anyone who speaks reality. So Greece, a small country, which can't repay the amount of debt outstanding, must wait for a new cast of European politicians before sound economic arrangements can be implemented. The current deal just kicks the can down the road pending such political change; it has no chance of success. Comme ca change, comme c'est la meme chose.
171
It's "plus ça change, plus c'est la même chose," but what a beautiful analysis you've otherwise presented -- it's so nice to see original thoughts appear in the NYT comments! (Usually they never make it past the censors.)
2
De plus ca change, de plus ca reste le meme. (Sans des accents.)
In a brilliant Times column, Eduardo Porter recently made much the same point: governments don't want to recognize losses. Throughout the 20th Century, debt crises were solved only by a deep debt write-down. But invariably, it took a decade of half-measures before this obvious step was taken. Then, and only then, did a moribund economy come back to life and begin to grow again. http://tinyurl.com/nrcr95a
1
Dr. Varoufakis makes the same argument in his book "THe Global Minotaur". And he is correct about the very important role that capital flows and crushing debt have played on peripheral nations of which Greece is a member. However, there are other very important factors he ignores (in both this article and the book). He ignores the role and importance of institutions for example. Greece is the only nation in Europe not to have a land registry. Greece's institutions reek of corruption, cronyism and "roufeti" (Greek for you scratch my back, I scratch yours - a subtle form of corruption). This very important fact goes unsaid.
Mr. Varoufakis also ignores the role that clientelism has played in making a bad situation even worse. He also ignores Greece's excessive debt and runaway fiscal spending. This has been going on since 1980.
Mr. Varoufakis also needs to incorporate these into factors into his analysis regarding Greece's horrendous current economic condition.
Mr. Varoufakis also ignores the role that clientelism has played in making a bad situation even worse. He also ignores Greece's excessive debt and runaway fiscal spending. This has been going on since 1980.
Mr. Varoufakis also needs to incorporate these into factors into his analysis regarding Greece's horrendous current economic condition.
75
Yes, Yoda, Greece should never have been invited into the Euro. This was all common knowledge. Why were they allowed to participate before they cleaned these things up? Who is profiting now that they are failing economically? My vote goes to the BIG investment banks that will own the government services they are so handily destroying. Corrupt from the start.
Debt swaps? Selling off the commons to the "private sector" seems to me like a bad idea. Default on the debts to the private banksters, tell them you're writing down your debt at ten cents on the dollar and restart your own currency. Let the people of Greece run their own country and take it back from the banksters.
53
Germans and French were very clever.
1. They paid money through the troika to Greece to pay back the private German, French and US banks. The private banks got all the money with full interest.
2. The debt is owned by the troika who in turn get money from Germany, France and IMF (i.e USA). The tax payers of these countries would hate their politicians if they wrote off what was actually their tax payments.
3. Neither did Greece get any benefit nor did the German/French taxpayers.
4. The big banks laughed all along and will surely reward the politicians and bureaucrats with plushy jobs as soon as they get of govt./govt. jobs.
Simple as that.
1. They paid money through the troika to Greece to pay back the private German, French and US banks. The private banks got all the money with full interest.
2. The debt is owned by the troika who in turn get money from Germany, France and IMF (i.e USA). The tax payers of these countries would hate their politicians if they wrote off what was actually their tax payments.
3. Neither did Greece get any benefit nor did the German/French taxpayers.
4. The big banks laughed all along and will surely reward the politicians and bureaucrats with plushy jobs as soon as they get of govt./govt. jobs.
Simple as that.
The bankers who made the original loans to Greece have already socialized their losses - they got their governments to buy up Greek sovereign debt. The Eurozone governments are terrified of admitting that they bailed out the banks, so they keep extending and pretending.
His 5 minutes of fame certainly got to his head. Blame Europe, not his own narcissistic approach to negotiations. Now, has his fame is fading he is still trying to be in the headlines.
28
We all learned that even the most sensible alternative plan would not have been accepted. The agenda on the other side was to crush Syriza and continue austerity. No good faith on part of the Troika at all.
My advice to Mr Varoufakis for the next time around (not this election, but the one after that), as the problem will not go away:
1) concentrate on things you have control over, your own country
2) declare your central bank independent, but keep the Euro (Montenegro solution) as your national currency, backed by full foreign currency controls
3) declare moratorium on all debt to troika from the beginning
4) Introduce supplementary currency to give basic small income (to ensure universal acceptance) and allow employer of last resort program,
5) get rid of the troika trolls from your country and never let them in again
6) start re-negotiating debt repayments after a 12 months moratorium
Forget about changing the EU in good faith negotiations, although last attempt in first half of the year was worth a try. But we know all know it is impossible, and that means the end of democracy.
My advice to Mr Varoufakis for the next time around (not this election, but the one after that), as the problem will not go away:
1) concentrate on things you have control over, your own country
2) declare your central bank independent, but keep the Euro (Montenegro solution) as your national currency, backed by full foreign currency controls
3) declare moratorium on all debt to troika from the beginning
4) Introduce supplementary currency to give basic small income (to ensure universal acceptance) and allow employer of last resort program,
5) get rid of the troika trolls from your country and never let them in again
6) start re-negotiating debt repayments after a 12 months moratorium
Forget about changing the EU in good faith negotiations, although last attempt in first half of the year was worth a try. But we know all know it is impossible, and that means the end of democracy.
36
Dear Mr. Varoufakis, Your country overspent, lied about its debt, tried to manipulate public opinion, and is still trying to walk away from its fiscal responsibility, at a huge expense to other countries. On the other hand, the world should greatly appreciate Greece's involvement with the Middle Eastern migrant invasion, and be giving Greece considerable assistance with it.
40
Not surprisingly self serving. Once again, the proposal is a sophisticated academic macroeconomic plan that overlooks the very basics of the problems of the Greek economy (but is very cognizant of its political impotence); Greece is a country that does not collect taxes it imposes, is rife with entitlements, inefficient state owned corporations and graft. Once can talk about debt restructuring ad infinitum, but the problems are much more granular and basic and perhaps cultural. "We want your money, we want debt relief (i.e. - more of your money), we want to stay in the Eurozone but don't tell us what to do". Its a laughable position and if the Syriza government had any convictions, they would have Grexited stage left and returned to the drachma rather than submit to the program of actually reforming its fiscal and economic systems, living within its means and continuing to whine about it!
89
You are wrong. The bankers knew well that Greece's loans were unsustainable and yet, they kept lending, knowing that Merkel would cover the losses. However, what happened has happened. many were at fault. Countries cause wars and ethic cleansing and are not punished. Germany is a prime example. Why is Greece being held to a different standard? What happened to solidarity. Merkel is showing more solidarity to the migrants, inviting all of the Middle East to come to Europe. She should fly them directly to Germany. Why let them go through Greece first. Germany has a black eye, after her treatment of Greece and now wants to show her "softer side" Let her suffer the consequences then
21
After surviving the Ottoman invasion, and the German atrocities inflicted during WW2, and WAY after creating democracy, philosophy, and theater, and more recently after exemplifying hard work and discipline as immigrants to this country, what is your cultural thesis based on? Surely not the Greek work ethic.
Tax evasion is legal in the US, written into tax laws complete with all the loop holes the wealthy require in order to rob and steal. We even buy our politicians blatantly with legal "contributions."
Self serving? Look in the mirror. Laughable, indeed.
Tax evasion is legal in the US, written into tax laws complete with all the loop holes the wealthy require in order to rob and steal. We even buy our politicians blatantly with legal "contributions."
Self serving? Look in the mirror. Laughable, indeed.
3
Did you just choose not to read the section where Mr Varoufakis outlined their proposal to create a development bank to privatize public assets for resale where those funds could be used to invest in their economy again? Or where he outlined the creation of an independent tax collection body so as to create a more effective and efficient taxation system? You can try to ignore the fact that Greece has given a lot of ground in these negotiations up against a brick wall of ignorance from European creditors. Let us not ignore the responsibility of lenders to run due diligence on their investments, as an investor myself it is my duty to analyse my own risks and I do not expect private citizens and governments to come to my rescue should they fall through. A sane and rational response was needed from all sides where focus was made on the real life situation, not some fantasy where all Greeks had to do was tighten their belts a little and things would be better. It is shameful that moralizing from Northern Europe has destroyed the lives of innumerable fellow Europeans. History will reflect poorly on those involved in these 'negotiations' acting on behalf of their own self-interests and private banks who should have been left to fend for themselves as Greeks are made to do now.
3
Varoufakis proposals were perfectly reasonably, never mind all the spleen toward Greece displayed by many commenters. None are seem to realize that much of the bloated Greek bureaucracy has in fact been reduced, from where do they think the 25% unemployment comes from? His problem was political weakness, not lack of economic wisdom. Greece did and does not have the muscle to stand up to whatever conditions Germany wanted to impose. Mr. Schauble may honestly believe that Greece needs hard medicine but his approach was to impose a plan that will keep Greece down for many more years. Eventually much of the debt will have to be written of, the longer this goes on the bigger the amount that will not be repaid.
58
As this story demonstrates yet again, the Troika never meant to negotiate in good faith with the Greek government, but simply imposed its own destructive austerity and privatization program on it.
It's also clear that the EU per se has very little independent existence, being mainly administrative scaffolding for the German government to pursue its own essentially predatory policies directed at the subjugation of the rest of Europe.
It's also clear that the EU per se has very little independent existence, being mainly administrative scaffolding for the German government to pursue its own essentially predatory policies directed at the subjugation of the rest of Europe.
74
It's always good to have a fall guy at hand,
that reduces the need for self-reflection.
And no, you won't hear some admission of a misconception from a genius like Varoufakis. All the others have just pure evil and selfish intentions and want to crush you just for the fun of it.
that reduces the need for self-reflection.
And no, you won't hear some admission of a misconception from a genius like Varoufakis. All the others have just pure evil and selfish intentions and want to crush you just for the fun of it.
3
A remarkable article.
I am one of the Old believers in the European ideal of Economic and Social cohesion; I have worked in support of the Accession process for over twenty years and watched in dismay as an alien ideology of neoliberalism (Corporatist Capitalism) has reduced the European Ideal to “fumbling in a greasy till”, W. B. Yeats on Ireland.
I have also watched in dismay as the same ideology pre-empted Political decision-making in Ireland to force the Irish people to pay the private debts of headstrong and bankrupt Banks.
We all know that neoliberal economics is the driver of grotesque mal-distribution of wealth as a privileged nomenclature gorges on resources it has commandeered through insider dealing. The predations of this ideology over recent years mimic the violent reaction of Europe’s other great Union – the Soviet Union – to any challenge to the privileges of the nomenclature.
The Greek people can be proud of their rejection (by referendum) of the European Union nomenclature –their action resonates with the Prague Spring rejection of the Soviet Union nomenclature way back in 1968. The Prague Spring was crushed by Soviet Tanks, the Greek Spring is being throttled by a combination of self-serving International Institutions designed to protect the Neoliberal ideology and the Corporate Capitalist nomenclature it serves.
I hope that people like Yanis Varoufakis can remain a dominant influence in the resistance to the takeover of the European Union.
I am one of the Old believers in the European ideal of Economic and Social cohesion; I have worked in support of the Accession process for over twenty years and watched in dismay as an alien ideology of neoliberalism (Corporatist Capitalism) has reduced the European Ideal to “fumbling in a greasy till”, W. B. Yeats on Ireland.
I have also watched in dismay as the same ideology pre-empted Political decision-making in Ireland to force the Irish people to pay the private debts of headstrong and bankrupt Banks.
We all know that neoliberal economics is the driver of grotesque mal-distribution of wealth as a privileged nomenclature gorges on resources it has commandeered through insider dealing. The predations of this ideology over recent years mimic the violent reaction of Europe’s other great Union – the Soviet Union – to any challenge to the privileges of the nomenclature.
The Greek people can be proud of their rejection (by referendum) of the European Union nomenclature –their action resonates with the Prague Spring rejection of the Soviet Union nomenclature way back in 1968. The Prague Spring was crushed by Soviet Tanks, the Greek Spring is being throttled by a combination of self-serving International Institutions designed to protect the Neoliberal ideology and the Corporate Capitalist nomenclature it serves.
I hope that people like Yanis Varoufakis can remain a dominant influence in the resistance to the takeover of the European Union.
94
The Greek people can be proud of their rejection (by referendum) of the European Union nomenclature...as long as they get the money, correct?
Pride goeth before a fall.
Pride goeth before a fall.
1
The money is not for the Greek people. It is to pay off the creditors who imposed the previous Bailouts.
Mr. Varoufakis needs to re-examine his history. FDR didn't end the Great Depression in the U.S. by abandoning the gold standard. The Great Depression persisted despite all his efforts until the demands of WWII put everyone to work either producing or fighting.
His arguments about how irrational the eurozone has been in not transforming its economic framework to a form more convenient to Greece, which represents only about 2% of the eurozone's GDP, is not compelling. It's like the argument of millions of illegal aliens from failed societies given citizenship who then turn around and agitate for changing the host society so that it better resembles the failed societies. The eurozone's economic framework is hardly "undemocratic" if its most vocal critics number so few among the whole.
Some of the plans Mr. Varoufakis extols have merit, such as his "development bank". But it's Syriza that's been least open to reforming excessively protective labor practices, reforming tax collection and a still-overwhelming public sector. The truth is that they don't really want to change and want the debt to simply go away. The only way it can is by exit, repudiation for a period of debt service and a starting over on a basis that is strategically sustainable.
And Mr. Varoufakis's desire for European "democratization" is merely self-interested rationalization for leveling ALL of Europe to avoid the consequences to peoples of excessive debt voluntarily and knowingly amassed.
His arguments about how irrational the eurozone has been in not transforming its economic framework to a form more convenient to Greece, which represents only about 2% of the eurozone's GDP, is not compelling. It's like the argument of millions of illegal aliens from failed societies given citizenship who then turn around and agitate for changing the host society so that it better resembles the failed societies. The eurozone's economic framework is hardly "undemocratic" if its most vocal critics number so few among the whole.
Some of the plans Mr. Varoufakis extols have merit, such as his "development bank". But it's Syriza that's been least open to reforming excessively protective labor practices, reforming tax collection and a still-overwhelming public sector. The truth is that they don't really want to change and want the debt to simply go away. The only way it can is by exit, repudiation for a period of debt service and a starting over on a basis that is strategically sustainable.
And Mr. Varoufakis's desire for European "democratization" is merely self-interested rationalization for leveling ALL of Europe to avoid the consequences to peoples of excessive debt voluntarily and knowingly amassed.
32
To Richard Luettgen: Verily, thou speakest with the voice of a GOP conservative! "The eurozone's economic framework is hardly "undemocratic" if its most vocal critics number so few among the whole." Not so, sir.
The hallmark of a democracy is the free exercise of the right of the populace to criticize (even in a court of law) its government: the fewer the people criticizing, the more likely the government is undemocratic. The reason the eurozone's most vocal critics number so few among the whole is precisely that for which you criticize Mr. Varoufakis - self-interest. Far too many eurozone countries are motivated by their own "self-interested rationalization", whether they are the richer and more powerful countries such as Germany or the poorer and generally weaker countries; the richer and more powerful are interested in preserving their own power and wealth, while weaker and poorer ones such as Portugal and Spain either are unwilling to see another country avoid the suffering they endured when austerity was imposed on them or are led by right-wing governments that fear being ousted should an even mildly leftist government such as Syriza meet with success. The lack of responsiveness to democratic principles within the EU is built into its convoluted political structure and, alas, unless somehow corrected before it's too late, will likely destroy the original "dream" of a Europe unified in peace.
The hallmark of a democracy is the free exercise of the right of the populace to criticize (even in a court of law) its government: the fewer the people criticizing, the more likely the government is undemocratic. The reason the eurozone's most vocal critics number so few among the whole is precisely that for which you criticize Mr. Varoufakis - self-interest. Far too many eurozone countries are motivated by their own "self-interested rationalization", whether they are the richer and more powerful countries such as Germany or the poorer and generally weaker countries; the richer and more powerful are interested in preserving their own power and wealth, while weaker and poorer ones such as Portugal and Spain either are unwilling to see another country avoid the suffering they endured when austerity was imposed on them or are led by right-wing governments that fear being ousted should an even mildly leftist government such as Syriza meet with success. The lack of responsiveness to democratic principles within the EU is built into its convoluted political structure and, alas, unless somehow corrected before it's too late, will likely destroy the original "dream" of a Europe unified in peace.
3
That's what happens when an economist professor with a political agenda but no political skills swims against the current. At least Krugman stays safely out of the fray and contents himself with pontificating.
Nowhere in your supposed "plan" was shrinking the Greek bureaucracy, the major source of the Greek crisis.
Nowhere in your supposed "plan" was shrinking the Greek bureaucracy, the major source of the Greek crisis.
16
Hahaha
Thats right Europe cooked the books to get in the EU, Europe lied about Greeces deficits for years, Europe passed laws where people could retire at 50, Europe choose ti loom yhe other way when Greeks did not want to pay taxes to support the socialist state, Europe passed the laws to make Greece have one of the most protected job markets in Europe, Europe voted in your party at the exact moment thing were turning around (your party killed the reform before approving it).
Thats right Europe did all of these things. Other European countries made different choices and did suffer a lot of short term pain but now they are doing much better because they msde the hard choices and did not blame everyone but themselves see Ireland, some baltic countries, and to a lesser extent Spain but they too have avoided some tough medicing esspecially in the jobs market.
You are just mad because like a drug addict you are addicted to other peoples money and its never your fault. One day when you hit bottom your country will do what needs to be done and put the proper reforms in place and these pronlems will dissapear. You just have to go through the painful withdrawal phase first.
Thats right Europe cooked the books to get in the EU, Europe lied about Greeces deficits for years, Europe passed laws where people could retire at 50, Europe choose ti loom yhe other way when Greeks did not want to pay taxes to support the socialist state, Europe passed the laws to make Greece have one of the most protected job markets in Europe, Europe voted in your party at the exact moment thing were turning around (your party killed the reform before approving it).
Thats right Europe did all of these things. Other European countries made different choices and did suffer a lot of short term pain but now they are doing much better because they msde the hard choices and did not blame everyone but themselves see Ireland, some baltic countries, and to a lesser extent Spain but they too have avoided some tough medicing esspecially in the jobs market.
You are just mad because like a drug addict you are addicted to other peoples money and its never your fault. One day when you hit bottom your country will do what needs to be done and put the proper reforms in place and these pronlems will dissapear. You just have to go through the painful withdrawal phase first.
29
Other European countries, that were in the same situation as Greece are doing better, you say. Who might they be? Iteland, that has high GDP, but its all a reflection of the high corporate profits that don't plow back anything to the economy? The Irish people are suffering, just as much as before, with no end in sight. Is the Spanish economy, with its unemployment that rivals Greece's? Is it Portugal, that is rivaling Greece for the bottom of the EU barrel? The only ones who are doing better are the banksters, that were lending money and were rescued by Merkel. Everyone else isn't
2
Yanis, what is happening in your country is a modern greek tragedy, but the real tragedy is that you and the Syriza party and many of your countrymen fail to own up to the fact that this economic situation was brought on by a corrupt, bloated and inefficient economic system. Sure it's easy to blame everyone else for your problems. But the fact of the matter is that you have no one to blame but yourselves. Continually asking europe for a hand out is shameful. Imagine what would happen if a family brings economic ruin upon itself due to mismanagement of the family's finance's then goes to the local bank and continually asks for a bailout . The head of the family would quickly be shown the door. And that dear yanis is what europe is doing to your beloved country. There's no such thing as a free lunch. Pay up, suck it up and join the modern era or get out of the eurozone, go back to the drachma and take a step back into the not so glorious past. You may be a professor of economics, but you certainly failed this final exam.
48
This is rich given the six months of antics of this buffoon that cost the Greek economy an estimated 40 billion Euros and essentially rendered him individually persona non grata with the other 18 finance ministers of the Eurozone. The causes of the continuing trouble for Greece lie not in the Eurozone but within Greece itself and it's apparent inability to reform its political culture and economic system. Right now they are in the throes of yet another vote, the third in 9 months because of the grotesque incompetence of the Syriza government of which he was a leading member, along with the Prime Minister Tsipras, you could say the leading member. Having created chaos he's now going to "Sit this one out" while penning mendacious editorials blaming others for his own failures and inventing conspiracies which he asserts are the cause of Greece being crushed. Happily Varoufakis's credibility appears to be completely destroyed not across the Eurozone but also in his own country so he's probably had his 15 minutes of fame.
82
You respond to a reasonable article with name calling and the suggestion that Greeks collectively and in short order reform their entire political and economic system.
Imagine trying this in your own country. Imagine the people of the United States getting together and in six months reforming the entire political and economic system of this nation in response to the demands of another nation.
Where would they even begin?
I wouldn't have bothered to reply but that this foolish prescription appears again and again and appears to be an instinctive response from those who equate the Greek problem with the non payment of private debt.
What is being proposed here by the Germans is that European banks be reimbursed for privately incurred debts out of Greek tax revenues.
This is shameful!
Imagine trying this in your own country. Imagine the people of the United States getting together and in six months reforming the entire political and economic system of this nation in response to the demands of another nation.
Where would they even begin?
I wouldn't have bothered to reply but that this foolish prescription appears again and again and appears to be an instinctive response from those who equate the Greek problem with the non payment of private debt.
What is being proposed here by the Germans is that European banks be reimbursed for privately incurred debts out of Greek tax revenues.
This is shameful!
2
Varoukakis is a communist and economically incompetent. He was rejected by the EU for both his outlandish concepts and demeanor.
He is an insult to Greece.
He is an insult to Greece.
16
For now the Greek bailout deal with all its stringent austerity conditions attached to it might be okay as a one shot emergency move reluctantly accepted by the Greeks, but the lasting solution to the recurring crises in the Eurozone could only be an establishment of pan-European political union to sustain the existing monetary union with a broad common framework of fiscal policies applicable to the entire Union area, as rightly argued by the author.
18
Greece got trampled not only by the elephants you mentioned. The other elephant tussle in the room is the one between the U.S. appreciating Dollar versus the relatively depreciating Euro (or rather the German economy). The little guy always pays for the broken china.
9
God Lord, fate really treated you unfair, Mr Varoufakis.
It started with the first week in your election term, you and Mr Tsipras were on a tour through europe to forge an alliance against austerity. It was never meant to change things by negotiation, it was always meant to make a stand-off against Berlin, which you have always considered to be an unilateral personification of a policy. This first weak started bad, and Tsipras made his first meeting with Merkel without backing. And rightful so, the united europe, that you so passionate promote, shouldn't started with singeling out your political opponents.
After that you always seemed to be above the terms about negotiation. It is not about austerity or not, it is about making contracts, keeping contracts, monitoring contracts. The troika was nothing more than a supervision of a contract, but instead of changing the contract, you dismissed the supervision.
Greece has a bad record in governance, in dodging contract terms. Did you really believe, your reputation would dispel doubts. Your actions made even those jittery, that would have supported you otherwise.
To put it short, i don't think too, that austerity is the right policy. But like you said, we need a base of mutual trust.
Your action of discontent, division and reluctance to accept any doubts of other members of the union made your direction a lost cause. And that's a pity, because you may be right in economic aspects, but you are a rookie in gaming theorie.
It started with the first week in your election term, you and Mr Tsipras were on a tour through europe to forge an alliance against austerity. It was never meant to change things by negotiation, it was always meant to make a stand-off against Berlin, which you have always considered to be an unilateral personification of a policy. This first weak started bad, and Tsipras made his first meeting with Merkel without backing. And rightful so, the united europe, that you so passionate promote, shouldn't started with singeling out your political opponents.
After that you always seemed to be above the terms about negotiation. It is not about austerity or not, it is about making contracts, keeping contracts, monitoring contracts. The troika was nothing more than a supervision of a contract, but instead of changing the contract, you dismissed the supervision.
Greece has a bad record in governance, in dodging contract terms. Did you really believe, your reputation would dispel doubts. Your actions made even those jittery, that would have supported you otherwise.
To put it short, i don't think too, that austerity is the right policy. But like you said, we need a base of mutual trust.
Your action of discontent, division and reluctance to accept any doubts of other members of the union made your direction a lost cause. And that's a pity, because you may be right in economic aspects, but you are a rookie in gaming theorie.
42
Gorbachev was also a rookie - a rather inexperienced idealist who wanted a better life for his people. He succeeded eventually and had the effect of bringing the Union crashing down. Perhaps the European Union should recall what happened to the Soviet Union!
6
The fact is that Mr. Varoufakis had no business of being a finance prime minister, nor his party had the political qualification to lead the country. I would make a better finance prime minister. There's no doubt that the country has been corrupted years ago, and I was one of those citizens during a brief repatriation in Greece with my company that I went through the HELL, and it's been now almost 23 years since I was there. That sums it all. Greece will never be able to rise above the tide before the reasonable logic sinks in the mind of the politicians that integrity, ethical work, and commitment to sever and protected its people and work with its neighbors and the world it is the only recipe for resurrection!
9
Have you forgotten about Russia and where we are with it now?
1