Greece: debt, creditors, austerity measures, Syriza, Varoufakis, Troika

[casper]

Quote from Telegram:
9.31 German Chancellor Angela Merkel said she will be in Greece to implement major changes. Merkel says no need for Plan B (temporary Greek exit from the euro zone), when Plan A is realized, appeared in Greek media.

Merkel says Greece has emphasized that he wants to remain in the euro area, and to think that confidence can be restored. "The Greek people have a clear desire to remain part of the European family", said Merkel.

Merkel says must find the money to pay for the Greek rate the European Central Bank on July 20 The chancellor said that this assistance program is not different from such programs in other countries.



9:17 After Tusk, the media were addressed by the President of the European Commission, Jean-Claude Juncker and Jeroen Dijsselbloem, Dutch Finance Minister and President of the Eurogroup. Dijsselbloem said that trust was one of the key issues.

Juncker said: "This is a typical European agreement" and that there are no winners and losers.

Dijsselblooem said it will establish a fund with the Greek assets worth 50 billion euros, but the fund will have headquarters in Athens, not Luxembourg as originally planned. The Fund will keep the Greek property, which will then either privatize or manage it, and that money will be used for recapitalization of banks and debt reduction.

 

[un chien anadolu]

The last developments in Greece involving Tsipras reminds me -once again- how normal and rightminded people may end up being toys&guns controlled by psychopaths eventually. Like in the movie 'Arlington Road', Tsipras being Michael Faraday (Jeff Bridges).

 

[spyraal]

Yep, it seems Tsipras finally gave in to a horrific, costly and humiliating agreement for the Greek people. The next episode of this drama will be played in the Greek parliament, when it will be called the coming days to validate and approve the agreement by majority and also provide a "fast-track" vote for the amazingly harsh "reforms" Germany wants in order to allow for any more blood money to enter the country. The so called "Left Platform" inside SYRIZA that accounts for many of it's members has already cried a call to "war" (in political terms) and asked for other SYRIZA MPs to resist signing this monstrosity. I seriously doubt if SYRIZA can go through this unscathed, or even if they will manage to retain for much longer the needed parliamentary "vote of confidence" to Tsipras' government. Which will mean, either a new round of general elections (the better of choices), or even worst by invoking the "emergency of the situation", a rapid formation of a treacherous non-elected "government of the willing" coming from the other 5th columnists and their puppet parties.

Tsipras should have known better: After he gave in to the EU blackmailers, he actually betrayed twice (elections, referendum) the will of his people for NO more austerity and humiliation, and now they have him right where they wanted: It is a win-win situation for them. Now either Tsipras will meet his imminent political death by betraying his supposed agenda for change, or he will be removed altogether by elections or a law-bending "emergency" coup. Needless to say people are rightfully outrageous and an explosive mixture is building up. Protests are called by the people all over the country to oppose this agreement and apply pressure to SYRIZA.

I also read somewhere that if Greece finally receives money from (and thus enters) the Orwellian Super-State organization know as European Stability Mechanism (ESM) it will have to let go of it's right to seek funding from any other source, like BRICS for example, as it will have to agree to an exclusive relationship with the ESM. I am not 100% certain of the validity of this yet, but it fits the big picture and the nasty totalitarian nature of ESM.

What is really jaw-dropping for me is that Tsipras and Varoufakis, after so many months of blackmail and ultimatums from the European racketeers, it seems that they had made absolutely no real preparation for a "Plan-B" or else an organized Grexit under the best possible terms for Greece. The Greek "revolver on the table" that Tsipras was claiming to hold during negotiations, was actually a water-pistol without even water on it... It is just unbelievable! This ranges from extreme naivety and incompetence, to premeditated high treason. Such a preparation would involve quietly initiating the procedure to facilitate the swift transition and the printing a new national currency, while at the same time saving exchange money to provide the Greek economy with the needed liquidity to function for this transitional period, covering at the same time for whatever imports might be necessary. There is no sign what-so-ever of such a forethought and planning. I just can't believe it! This is pure criminal neglect, if not much worst... What the hell were they thinking? That the EU extortionists and wheeled nazi psychopath Schäuble would be made to listen to reason and Varoufakis "sound economic arguments" no matter what? This just goes beyond me..!

The best proof of that can be found on Tsipras' emotionally charged speech on the parliament on Friday when he said something in the lines of "We have no other options. Either we sign a harsh new deal, or we are facing a complete disaster". Really? What deal he expected to strike the coming days after this public confession of weakness and no alternatives? It was then when he should have said, "OK we tried our best for a decent agreement, and we are now pushed to sign a unbearably harsh deal that goes against the will and mandate of our people. But me as Prime Minister and Greek government have already worked on an alternative plan, a plan that if approved by our citizens would put one more option on the table: our own initiative for an organized Grexit for which we have been preparing from the first day I took office." This is what I would expect from him, but obviously he doesn't have the guts, will or resolve to be of true service to the Greek people at this defining moment of their modern history.... Shame, shame, shame....

 

[spyraal]

Very interesting news!

After my previous post where I blamed the Greek government for appearing not to have any "Plan B", I just read an interview by Varoufakis that was published just this morning, where for the first time he openly explains the reasons of his resignation and whether there was actually an alternative plan on behalf of the the Greek government. It seems Varoufakis was well aware of the situation and what he was dealing with, and actually did try to prepare the country for a Grexit, as well as take some countermeasures against the coming pressure from Eurogroup. According to him, it was Tsipras and some of the other cabinet members that chose to disregard the mandate of the referendum and follow to the end a line of no-confilct whatever happens. So, my apologies to you for my mistaken assumptions, and mainly to Varoufakis who appears to have tried his best. It appears Tsipras is the one that should take the blame and the shame...

This is my translation of his interview from Greek media for you all and for the sake of objectivity.

"Former Minister Of Finance G.Varoufakis revealed that he had an alternative plan for the exit of Greece from the Eurozone, highlighting that from the first minute had taken office he had devised plan if negotiations failed.

But when he recommended, shortly before the Greek banks were closed by the ECB, to introduce a parallel currency and a unilateral "haircut" of the ECB's loans, while taking control of banks by the state, that was not accepted by A.Tsipras and the nine-member government commission with 6 votes against and 3 supporting his proposal.

Also, in today's interview to a British Newstateman, he accused Prime Minister Alexis Tsipras for a change in tactics and an withdrawal against Greece's lenders, saying that he [Tsipras] "ceased to negotiate."!

In a remark by journalist Harry Lampert "You must have thought of Grexit from day one," he replied: "Yes, absolutely."

Thus, the reporter continued asking: "Had you done any according preparation?" And Mr. Varoufakis replied: "The answer is yes and no. We had a small group, "the war council" (war cabinet) within the ministry, which consisted of about five people who did this: We worked it out in theory, on paper, everything that had to be done (to prepare a Grexit). But this is one thing that happened at the level of 4-5 people, so it is quite another thing to really prepare the country for this. To really prepare the country, a decision should be taken at a higher level, but this decision was never taken. "

As it concerns his last week at the helm of the Finance Ministry, said that "my view was that we had to be very careful and not to provoke the activation of the [Eurogroup's] decision for a Grexit. [...] But I also thought that once the Eurogroup closed our banks, then we should activate the process ourselves."

"Thus, from what I understand, there were two options: a direct Grexit or printing IOUs (parallel currency) and regaining control of the Bank of Greece and a potential and not necessary yet preparation for Grexit?» asks the reporter.

The answer from Mr. Varoufakis: "Of course, of course. I never believed that we had to go straight to the new currency. My view was -and I had expressed it at the government- that if they [Eurogroup] dared to shut the banks, which I regarded as an aggressive move of incredible demonstration power, then we should also respond aggressively, but without crossing the line from where there would be no return."

Varoufakis continues: "I warned the cabinet that this would happen (that the ECB would close our banks) for a month now, in order to draw us into a humiliating agreement. When it happened -and many of our colleagues could not believe it when it happened- my proposal was to respond "actively". So let's just say here, that this was rejected (from other members of the cabinet)."

"And how close was this to happen?" asks Lambert, to get the response from the Greek ex-minister: "Let's say that out of six people, we were a minority of two."

At this point, Mr. Varoufakis adds: "Since that did not happen (what we recommend), I received my orders to close the banks with the consensus of the ECB and the Bank of Greece, something which I did not approve, but I still did because I'm a team player. I believe in collective responsibility."

"And then the referendum took place, and the referendum gave us a tremendous boost, such that would justify this kind of active response against the ECB, but then that very same night, the government decided that the desire of the people, this deafening "No", would not be the catalyst that would trigger this active approach."

"Instead of that, it was interpreted that it should to lead to larger compromises to the other side. In rhe meeting of the council of political leaders, our Prime Minister accepting the assumption that whatever happens, whatever the deeds of the other side, we will never answer, and in no way will challenge them. And basically it means ... folding. This way you stop negotiating. "

Note that the interview was given before the agreement.

 

[loreta]

Thanks you again spiraal for the news. How sad... but I am not surprised at all. We don't know exactly if Tsipras received threads. Everything is possible with the plutocrats. One question: are the banks still close? This is always in mi mind.

Take care!

 

[spyraal]

Thanks you again spiraal for the news. How sad... but I am not surprised at all. We don't know exactly if Tsipras received threads. Everything is possible with the plutocrats. One question: are the banks still close? This is always in mi mind.

Take care!

A true leader is never threatened IMO. Either he takes the risks of yielding power for his people or resigns and goes back to safety of his home. Yes the banks still closed until new deal is approved by parliament and some first harsh "reforms" are implemented. You are welcome and take care too. :)

 

[loreta]

Thanks you again spiraal for the news. How sad... but I am not surprised at all. We don't know exactly if Tsipras received threads. Everything is possible with the plutocrats. One question: are the banks still close? This is always in mi mind.

Take care!

Yes the banks still closed until new deal is approved by parliament and some first harsh "reforms" are implemented. You are welcome and take care too. :)

Thank you. This surely (banks close or open) was something that serve to deal this accord. What a shame those bankers, those politicians. And Madame Merkel....

 

[luke wilson]

Don't trust the ex finance minister right away. He may be lying to save his image and reputation. Politicians are expert liars and now the backstabbing begins where they will start shifting blame left right and center in such a way that it just confuses everyone.

 

[Seaniebawn]

Don't trust the ex finance minister right away. He may be lying to save his image and reputation. Politicians are expert liars and now the backstabbing begins where they will start shifting blame left right and center in such a way that it just confuses everyone.

That's the way I see it Luke, there's been so much happening over the last week that it's hard to get a bead on anything, to me it look's like a big charade, thing's in politics rarely move so fast, I think we may be missing the forest from the tree's, look's like this is going to be a wait and see situation.

 

[Eboard10]

Very interesting news!

After my previous post where I blamed the Greek government for appearing not to have any "Plan B", I just read an interview by Varoufakis that was published just this morning, where for the first time he openly explains the reasons of his resignation and whether there was actually an alternative plan on behalf of the the Greek government. It seems Varoufakis was well aware of the situation and what he was dealing with, and actually did try to prepare the country for a Grexit, as well as take some countermeasures against the coming pressure from Eurogroup. According to him, it was Tsipras and some of the other cabinet members that chose to disregard the mandate of the referendum and follow to the end a line of no-confilct whatever happens. So, my apologies to you for my mistaken assumptions, and mainly to Varoufakis who appears to have tried his best. It appears Tsipras is the one that should take the blame and the shame...

Very interesting indeed spyraal. In such chaotic situations, it's not always easy to discern truth from lies but it's possible that what Varoufkis says is correct, especially when you listen to Tsipras wanting to stay in the Euro no matter what (almost). I'm in no way attacking the PM for what he's currently doing but I would tend to agree that accepting the German/EU proposal of "temporarily" leaving the Euro would have been a better choice in the long run for the Greeks rather than continuing to face open-ended austerity measures, with the only outcome of kicking the can further down the road. The initial effects from the devaluation of the new currency would of course have a negative impact on the economy, but it would give the Greek government the flexibility to direct its own fiscal policy and easing measures to reverse the current trend, something it can't do as long as it's at the mercy of the ECB. Yes, the risk of multinational corporation buying up Greek companies at cents on the dollar would of course be there but the government could implement a directive imposing a ceiling on foreign ownership in Greek companies if really necessary. It's still a better option than what the EU is asking for Greece to transfer €50bn of national assets to an external fund.

 

[Possibility of Being]

Seems the same interview is published here:

http://www.newstatesman.com/world-affairs/2015/07/yanis-varoufakis-full-transcript-our-battle-save-greece

As for the Plan B, as I understand it, they had barely a sketch, and that's not something you can rely on.

Another interesting piece from the interview:

HL: What was it like? Did you like any aspect of it?

YV: Oh well a lot of it. But the inside information one gets… to have your worst fears confirmed … To have “the powers that be” speak to you directly, and it be as you feared – the situation was worse than you imagined! So that was fun, to have the front row seat.

HL: What are you referring to?

YV: The complete lack of any democratic scruples, on behalf of the supposed defenders of Europe’s democracy. The quite clear understanding on the other side that we are on the same page analytically – of course it will never come out at present. [And yet] To have very powerful figures look at you in the eye and say “You’re right in what you’re saying, but we’re going to crunch you anyway.”

HL: You’ve said creditors objected to you because “I try and talk economics in the Eurogroup, which nobody does.” What happened when you did?

YV: It’s not that it didn’t go down well – it’s that there was point blank refusal to engage in economic arguments. Point blank. … You put forward an argument that you’ve really worked on – to make sure it’s logically coherent – and you’re just faced with blank stares. It is as if you haven’t spoken. What you say is independent of what they say. You might as well have sung the Swedish national anthem – you’d have got the same reply. And that’s startling, for somebody who’s used to academic debate. … The other side always engages. Well there was no engagement at all. It was not even annoyance, it was as if one had not spoken.

[...]

HL: What is the greatest problem with the general way the Eurogroup functions?

YV: [To exemplify…] There was a moment when the President of the Eurogroup decided to move against us and effectively shut us out, and made it known that Greece was essentially on its way out of the Eurozone. … There is a convention that communiqués must be unanimous, and the President can’t just convene a meeting of the Eurozone and exclude a member state. And he said, “Oh I’m sure I can do that.” So I asked for a legal opinion. It created a bit of a kerfuffle. For about 5-10 minutes the meeting stopped, clerks, officials were talking to one another, on their phone, and eventually some official, some legal expert addressed me, and said the following words, that “Well, the Eurogroup does not exist in law, there is no treaty which has convened this group.”

So what we have is a non-existent group that has the greatest power to determine the lives of Europeans. It’s not answerable to anyone, given it doesn’t exist in law; no minutes are kept; and it’s confidential. So no citizen ever knows what is said within. … These are decisions of almost life and death, and no member has to answer to anybody.

Looks like he just woke up to the real world. Last week, when the Greek ministers had a meeting, this was posted by a foreigner living in Greece on his blog (in my quick translation):

Yesterday some Syriza activists admitted that they were lied to in the negotiations, so they lost 5 months, as they lacked experience. Now they even do not know how to introduce the drachma without liquidation of banks and bringing Greece into a need to be put on auction in a few days. Now they understand that they do not know, that there is no one among them who knows... some well known Syriza members said exactly that yesterday evening, publicly, in front of cameras, after the meeting of their deputies and the party’s leadership. (Formerly they believed that they have such people, looks like they overestimated the situation and hold too high expectations.)

Greeks voted on SYRIZA so to finally have a government that consists of non-thieves, non-cheaters, non-bribe-takers, not traitors/collaborators. Syriza experts came from different universities, but not from actual power or practical diplomacy. Their experience with these mechanisms - Zero.

I don't know if that's true and if having even the best diplomats and political experts could have helped. But it seems they have just been 'baptized' to the psychopaths' world.

 

[Seaniebawn]

Seems the same interview is published here:

http://www.newstatesman.com/world-affairs/2015/07/yanis-varoufakis-full-transcript-our-battle-save-greece

As for the Plan B, as I understand it, they had barely a sketch, and that's not something you can rely on.

Another interesting piece from the interview:

HL: What was it like? Did you like any aspect of it?

YV: Oh well a lot of it. But the inside information one gets… to have your worst fears confirmed … To have “the powers that be” speak to you directly, and it be as you feared – the situation was worse than you imagined! So that was fun, to have the front row seat.

HL: What are you referring to?

YV: The complete lack of any democratic scruples, on behalf of the supposed defenders of Europe’s democracy. The quite clear understanding on the other side that we are on the same page analytically – of course it will never come out at present. [And yet] To have very powerful figures look at you in the eye and say “You’re right in what you’re saying, but we’re going to crunch you anyway.”

HL: You’ve said creditors objected to you because “I try and talk economics in the Eurogroup, which nobody does.” What happened when you did?

YV: It’s not that it didn’t go down well – it’s that there was point blank refusal to engage in economic arguments. Point blank. … You put forward an argument that you’ve really worked on – to make sure it’s logically coherent – and you’re just faced with blank stares. It is as if you haven’t spoken. What you say is independent of what they say. You might as well have sung the Swedish national anthem – you’d have got the same reply. And that’s startling, for somebody who’s used to academic debate. … The other side always engages. Well there was no engagement at all. It was not even annoyance, it was as if one had not spoken.

[...]

HL: What is the greatest problem with the general way the Eurogroup functions?

YV: [To exemplify…] There was a moment when the President of the Eurogroup decided to move against us and effectively shut us out, and made it known that Greece was essentially on its way out of the Eurozone. … There is a convention that communiqués must be unanimous, and the President can’t just convene a meeting of the Eurozone and exclude a member state. And he said, “Oh I’m sure I can do that.” So I asked for a legal opinion. It created a bit of a kerfuffle. For about 5-10 minutes the meeting stopped, clerks, officials were talking to one another, on their phone, and eventually some official, some legal expert addressed me, and said the following words, that “Well, the Eurogroup does not exist in law, there is no treaty which has convened this group.”

So what we have is a non-existent group that has the greatest power to determine the lives of Europeans. It’s not answerable to anyone, given it doesn’t exist in law; no minutes are kept; and it’s confidential. So no citizen ever knows what is said within. … These are decisions of almost life and death, and no member has to answer to anybody.

Looks like he just woke up to the real world. Last week, when the Greek ministers had a meeting, this was posted by a foreigner living in Greece on his blog (in my quick translation):

Yesterday some Syriza activists admitted that they were lied to in the negotiations, so they lost 5 months, as they lacked experience. Now they even do not know how to introduce the drachma without liquidation of banks and bringing Greece into a need to be put on auction in a few days. Now they understand that they do not know, that there is no one among them who knows... some well known Syriza members said exactly that yesterday evening, publicly, in front of cameras, after the meeting of their deputies and the party’s leadership. (Formerly they believed that they have such people, looks like they overestimated the situation and hold too high expectations.)

Greeks voted on SYRIZA so to finally have a government that consists of non-thieves, non-cheaters, non-bribe-takers, not traitors/collaborators. Syriza experts came from different universities, but not from actual power or practical diplomacy. Their experience with these mechanisms - Zero.

I don't know if that's true and if having even the best diplomats and political experts could have helped. But it seems they have just been 'baptized' to the psychopaths' world.

That's very interesting, if true, I suppose the best thing to come out of something like that happening, is at least they now know what they're dealing with, Greek is only a small country, that sort of responsibility would weigh heavy on any human being there's tough decisions to be made.

 

[Joe]

What is really jaw-dropping for me is that Tsipras and Varoufakis, after so many months of blackmail and ultimatums from the European racketeers, it seems that they had made absolutely no real preparation for a "Plan-B" or else an organized Grexit under the best possible terms for Greece. The Greek "revolver on the table" that Tsipras was claiming to hold during negotiations, was actually a water-pistol without even water on it... It is just unbelievable! This ranges from extreme naivety and incompetence, to premeditated high treason. Such a preparation would involve quietly initiating the procedure to facilitate the swift transition and the printing a new national currency, while at the same time saving exchange money to provide the Greek economy with the needed liquidity to function for this transitional period, covering at the same time for whatever imports might be necessary. There is no sign what-so-ever of such a forethought and planning. I just can't believe it! This is pure criminal neglect, if not much worst... What the hell were they thinking? That the EU extortionists and wheeled nazi psychopath Schäuble would be made to listen to reason and Varoufakis "sound economic arguments" no matter what? This just goes beyond me..!

There may be another explanation. Tsipras et al may have been made aware of the kind of reality that awaited the Greek people after a "Grexit". Here we're not just talking about Greece finding a way to get back on its feet, but rather being cast adrift, alone, defenseless, a pariah, hated by the EU central powers and rich pickings for the vultures. In addition, if it turned to Russia etc. that would make it ripe for "regime change" and all sorts of other Washington-inspired problems. A former EU state being outside the Euro, at this point in history, is probably not a place for the faint of heart.

 

[Joe]

Just finished this. Think it sums it up pretty well without confusing anyone

Greek People "crucified" by EU 'elite' for wanting social justice

 

[Seaniebawn]

What is really jaw-dropping for me is that Tsipras and Varoufakis, after so many months of blackmail and ultimatums from the European racketeers, it seems that they had made absolutely no real preparation for a "Plan-B" or else an organized Grexit under the best possible terms for Greece. The Greek "revolver on the table" that Tsipras was claiming to hold during negotiations, was actually a water-pistol without even water on it... It is just unbelievable! This ranges from extreme naivety and incompetence, to premeditated high treason. Such a preparation would involve quietly initiating the procedure to facilitate the swift transition and the printing a new national currency, while at the same time saving exchange money to provide the Greek economy with the needed liquidity to function for this transitional period, covering at the same time for whatever imports might be necessary. There is no sign what-so-ever of such a forethought and planning. I just can't believe it! This is pure criminal neglect, if not much worst... What the hell were they thinking? That the EU extortionists and wheeled nazi psychopath Schäuble would be made to listen to reason and Varoufakis "sound economic arguments" no matter what? This just goes beyond me..!

There may be another explanation. Tsipras et al may have been made aware of the kind of reality that awaited the Greek people after a "Grexit". Here we're not just talking about Greece finding a way to get back on its feet, but rather being cast adrift, alone, defenseless, a pariah, hated by the EU central powers and rich pickings for the vultures. In addition, if it turned to Russia etc. that would make it ripe for "regime change" and all sorts of other Washington-inspired problems. A former EU state being outside the Euro, at this point in history, is probably not a place for the faint of heart.

That's the way I see it Perceval, not only an eye opener, but a warning for the rest of the smaller EU state's thinking about pulling a Greek style referendum, I suppose the mask has dropped, if not for the leaders of other EU states, who should know better, but anyone who is paying attention. pure naked aggression, although as the saker said, overt threat's are a sign of weakness