“Former
Greek Finance Minister Yanis Varoufakis has warned that the economic
reforms from Greece’s debt holders are doomed to fail. The
assessment comes as PM Alexis Tsipras has reshuffled his cabinet in
efforts to secure a third bailout package. The EU is preparing to
start talks with Athens on a third bailout which could reach €86
billion ($93 billion), but the reform program laid down by Brussels
as a precondition for the bailout will 'go down in history as the
greatest disaster of macroeconomic management ever,' Varoufakis told
BBC.”
“Varoufakis
stressed that in given conditions Prime Minister Alexis Tsipras, who
himself does not believe in the bailout, had little option but to
sign the agreement. 'We were given a choice between being executed
and capitulating. And he decided that capitulation was the ultimate
strategy,' Varoufakis said. On Saturday, new cabinet ministers were
sworn in after Tsipras replaced hardliners in his government,
following the agreement with the EU creditors. Energy Minister
Panagiotis Lafazanis and his two deputies were sacked. Lafazanis has
been replaced by Panos Skourletis, who initially appointed the
Minister of Labour and Social Solidarity in January. The reshuffle
marked 'an adjustment by the government to a new reality,' said
Skourletis. Germany’s parliament approved the beginning of the
talks on a third Greek bailout on Friday. In order to secure it,
Greece will have to implement further unpopular austerity measures.”
“Katrougalos
[appointed Labor Minister] said that by agreeing with Europe, the
Greek government was not backtracking from its promises to the people
and that the public referendum that rejected the EU’s tough
conditions was necessary to show the European elites that there are
alternatives to their economic policies. Another aim of the
referendum was to 'protect our government from a soft coup d’etat
that aimed to overthrow us,' Katrougalos told RT.”
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