Varoufakis: Bailout Reforms Will Fail


In a telling interview with BBC, ex-Greek finance minister Yanis Varoufakis blatantly stated that the reforms which the Greek parliament just passed— will fail.

The reforms, imposed in exchange for an 86 billion euro ($93.6 billion) lifeline will “go down in history as the greatest disaster of macroeconomic management ever,” Varoufakis told the BBC.

Yanis Varoufakis, who resigned after the referendum two weeks ago in the middle of negotiations with European lenders, has been outspoken about the conditions Germany imposed on Greece in numerous interviews.

He did acknowledge, however that Prime Minister Alexis Tsipras had little choice but to agree to the German demands.

“Alexis Tsipras at some point decided his government was at gunpoint,” Varoufakis told the BBC.

‘We were given a choice between being executed and capitulation and he decided capitulation was the optimal situation.’

But he said he understood “completely” why Tsipras had made the decision to go for the deal – which he decried as “the greatest disaster of macroeconomic management ever”.

“We are completely united in lambasting the highly undemocratic and economically irrational policies of the European Union towards the government,” Varoufakis added.

In his usual bombastic approach, Varoufakis told the BBC’s Mark Lobel: “This program is going to fail whoever undertakes its implementation.”

Asked how long that would take, he replied: “It has failed already.”


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