Schäuble’s plan — force Greece out of the Eurozone

14 July, 2015 at 09:19 | Posted in Economics | 1 Comment

Five months of intense negotiations between Greece and the Eurogroup never had a chance of success. Condemned to lead to impasse, their purpose was to pave the ground for what Dr Schäuble had decided was ‘optimal’ well before our government was even elected: That Greece should be eased out of the Eurozone in order to discipline member-states resisting his very specific plan for re-structuring the Eurozone.

image-2This is no theory.
How do I know Grexit is an important part of Dr Schäuble’s plan for Europe?
Because he told me so!

I wrote this article not as a Greek politician critical of the German press’ denigration of our sensible proposals, of Berlin’s refusal seriously to consider our moderate debt re-profiling plan, of the European Central Bank’s highly political decision to asphyxiate our government, of the Eurogroup’s decision to give the ECB the green light to shut down our banks.

I wrote this article as a European observing the unfolding of a particular Plan for Europe – Dr Schäuble’s Plan.

Yanis Varoufakis

1 Comment »

RSS feed for comments on this post. TrackBack URI

  1. Frances Coppola wrote a piece “Dr Schäuble’s Master Plan” (http://www.forbes.com/sites/francescoppola/2015/07/14/dr-schaeubles-master-plan/) based apparently on this (http://deutsche-wirtschafts-nachrichten.de/2015/07/14/schaeubles-plan-deutschland-muss-raus-aus-dieser-euro-zone/ ])

    Now, all this is fourth- or fifth-hand, but I still find the following part (from Coppola’s piece) extraordinary (or gobsmacking, as you’d say Lars):

    “[D]isorderly unwinding of the Eurozone is now unlikely. But because the possibility of countries leaving the Euro is now openly accepted, contagion in the form of a permanent risk premium on periphery government debt and higher interest rates in those countries is inevitable. And this suits Dr. Schaeuble’s purpose very well. It tightens the screws on the deficit nations, rendering their recovery more uncertain, their fiscal position more fragile and their political situation more combustible. If they attempt to escape from the German straitjacket, their banks can be broken as Greece’s were, ruining their economies and raising their debt burdens to unsustainable levels. Like Greece, they can then be forced out through failure to meet fiscal targets. Those who wish to avoid this fate must become more like Germany.”

    My jaw was resting lightly on the floor when I finished reading this. Can this be true, as in: what Schäuble actually thinks is a good idea? Where does this stop? Not Spain certainly. Italy? The right bank of the Rhine?


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.
Entries and comments feeds.