The plan for a parallel currency that the Greek government and the finance minister of the time, Yanis Varoufakis, were planning in 2015, were laid bare with all the details by his close associate at the time, Glenn Kim. the plan foresaw that ten percent of civil servants’ salary would be paid in vouchers and with them they would pay only debt to the tax office.
Glenn Kim explained the parallel currency system at an Italian parliamentary event organized by populist Beppe Grillo’s Five Star Movement on Monday.
According to the plan, the government would start by handing civil servants vouchers amounting to 10 percent of their monthly salary, to be used exclusively for paying debts to the tax authorities, just like food vouchers are used. If the system had been successful it would have been expanded to other state payments and in other sectors.
The voucher would have a specific value written on the back and an expiration date. If the vouchers would not be used within the said time frame, they would be re-issued with lower value in the next fiscal year.
video via Kathimerini
Kim, who is of Korean extraction and remains today one of the main advisers to current Finance Minister Euclid Tsakalotos, spoke in detail about the “fiscal currency,” as he called it, which, “if we had more time, could have been realized,” as he said.
To bypass legislation obstacles (law of 1972) that forbid the state to issue money for the payment of debts, Kim said that the voucher/parallel currency would be for a limited time period.
The measure would affect 500,000 civil servants.
But, how could civil servants use these vouchers to pay their taxes to the tax office, when they received their salary after taxes?
Yanis Varoufakis lashed out at daily Kathimerini that published such a article that “distorts the real plan” on the anniversary of the 2015 Referendum.
The plan was “a parallel payment system and not a parallel currency,” and that his plan has been “demonized” Varoufakis wrote on his website.
Varoufakis’ Plan B and the parallel currency or payment system was and still is an issue that sparks strong political debates in the country. His name functions like a red cloth in front of a raging bull. opposition parties already sharpen their clawas to launch another attack against the government.
Main opposition party New Democracy already submitted a question to finance minister Euclid Tsakalotos asking him whether he knew about this plan and what was his approach to this. Tsakalotos was deputy finance minister under Varoufakis.
KTG notes that Kim’s explanation and Varoufakis’explanation on his website are very different from each other. Varoufakis plan is much more complicated.
PS Does Beppe Grillo have plans or interest to adopt the parallel system or parallel currency for Italy?