Head of the European Stability Mechanism Klaus Regling said that the cost for Greece for having Yanis Varoufakis as Finance Minister was 100 billion euro. In an interview to private Skai TV, Regling said that he estimates the cost for Greece to be 100 billion euro, “although there was no real scientific tools to calculate the cost.”
“The Bank of Greece has estimated the cost at about 80 billion euro,” Regling explained and apparently arbitrarily added another 20 billion as a sign of let’s call it ” ESM’s generosity.”
Citing IMF’s growth projections from 2014 (2.5% for 2015 and 3.5% for 2016) , the ESM chief argued that cumulatively the cost for Greece amounted to 6% of the GDP, which is about 100 billion euros.
I suppose that Regling has never heard of any IMF official speaking of “wrong projections and wrong calculations and multipliers.Neither that the IMF sees no point in asking Primary Surpluses of 3.5% from Greece stressing Greek debt is unsustainable.
PS rounding up numbers and billions is always good …for the traders.