Finance Minister Yanis Varoufakis submitted his resignation on Monday morning after Greeks rejected creditors’ proposal with 61.31%. Below is what the “star” FinMin wrote in his blog.
The name of the new Finance Minister is to be announced after the Political Leaders Council currently conveying under President Pavlopoulos.
Dragasakis, Stathakis, Tsakalotos are the top runners for FinMin
IMHO: a deal with creditors has more chances to be secured with Dragasakis…
Of course, Varoufakis was forced to resign…
Three mistakes by Varoufakis on Referendum Sunday:
1. He made a statement – addressed Greeks before the Prime Minister: it was interpreted by the Prime Ministry as a move to set the frame for the new negotiations with creditors.
2. In his statement Varoufakis attacked creditors: it was understood as an effort to undermine Referendum’s ‘next time’ .
3. Varoufakis statement about ‘parallel currency’, the IOUS, caused PM’s discomfort as it could be understood abroad as an effort by the Greek government to ‘exit the Euro and return to Drachma.”
4. I can add Varoufakis’ statement on BBC4 Sunday noon, June 28th, that the government was planning bank holiday and capital controls.
Creditors’ had been asking Varoufakis’ removal since February. But, of course, it was politically impossible for PM Tsipras to have him resigned on creditors’ demand.
a reminder: Referendum Final Results: NO 61.31% – YES 38.69% – Invalid/White: 5.8%
KTG’s prediction Sunday noon was : NO 55%-62%
Athens Stock Exchange remains closed since Friday, 05:19 pm June 26th 2015
German government does not comment on Varoufakis’ resignation.
“Varoufakis was never an interlocutor for Chancellor Angela Merkel,” her spokesman Steffen Seibert said at a live press conference.
Germany on Debt Relief:
“Depending on Greece’s proposal/request, we will look into the issue of debt sustianability.”
“Door is open for negotiations. Referendum message is clear. we will wait for PM’s Tsipras proposal.”
To make Seibert’s presser short:
“Majority of Greeks accepted the government’s negative stance, we now have to wait and see GR gov’t’s new proposals.”
He also said something about “treaties & EU solidarity that Greece has to respect.”
Political Leaders Council continues – had a short break so that Tsipras could have a phone call with Hollande.
there could be a “pause” solution for Greece and an agreement later. Something like Greece in negotiations status”
Spain‘s Rajoy may have lost a friend (Samaras) but Germany‘s Schaeuble has certainly lost an enemy (Varoufakis)
Varoufakis may have been “red cape” primarily for FinMin Schaeuble and for many of his Eurogorup colleagues but he has a lot of supporters among economists and common people around the world.
The following Tweet by Professor of International Economics at Politecnico di Milano, Fabio Sdogati, ins been RT & FAV like crazy:
13: 50 pm
PM Tsipras had a phone talk with ECB’s Draghi
Russia’s Putin has reportedly request a phone conversation with Tsipras.
Banks have opened Monday for those pensioners who were unable to withdraw €120 maximum from their pensions.
Law on bank holiday expires Monday midnight. The government has to issue a new decision – expected late on Monday.
Greece’s government awaits for the ECB decision on ELA. ECB’s board is to meet and decide on Monday.
The ECB most likely will keep its “ELA freezing” position until after EU Leaders Summit scheduled for 6 pm Brussels time tomorrow Tuesday.
Eurogroup meeting on Tuesday, July 7th at 1 pm
“The Eurogroup will discuss the situation following the referendum in Greece that was held on 5 July 2015. Ministers expect new proposals from the Greek authorities.
The referendum was held after the Greek government unilaterally withdrew from ongoing negotiations with the institutions (the European Commission, the European Central Bank and the International Monetary Fund) on Greece’s comprehensive reform plan, foreseen under the agreement of February 2015.”
let’s make one thing clear as to why Greece “left negotiations” on June 26th.
EC Juncker said that they had mostly agreed on certain point but that there was a “difference of €60 million in austerity measures.”
So Greece left Brussels for the 60-million difference? No. Greece left because there was no strong commitment from the side of creditors on Greek Debt Relief. Without this small but of huge importance note, Tsipras could not have pushed the agreement through the Greek Parliament, through his own lawmakers.
Political Leaders Council is still ON under President Pavlospoulos since 10 am. Leaders have occasional breaks so that PM Tispras can talks with EU Leaders.
After Varoufakis, also Chouliarakis form Greek negotiation team submitted resignation.
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Below is what the “star” FinMin Yanis Varoufakis wrote in his blog on Monday morning::
The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage.
Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.
Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.
I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.
And I shall wear the creditors’ loathing with pride.
We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government.
The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.
source: varoufakis blog