Greece’s new Finance Minister Varoufakis tells German counterpart Schäuble to “expect a frenzy of reasonableness”

On the latest leg of his whistle-stop European tour, Greek Finance Minister, Yanis Varoufakis, today met with his German counterpart, Wolfgang Schäuble, in Berlin to continue talks on Greece’s debt. This was an extraordinary occasion and the press conference that followed their historic meeting can be watched on the video embedded below.

Varoufakis begins his main statement at 23:30 mins. In it, he outlines the forgotten reasons why Greece has been in an economic crisis for the last five years and highlights the serious implications were his government to fail in bringing about the urgent and radical economic reforms that are necessary to save the nation. But his tone throughout is very much one of reconciliation and so, for instance, he explains at some length why Tsipras’ decision to visit the war memorial immediately following his victory should not be misconstrued in petty nationalist terms (as so many in the media were quick to do) but understood correctly as “an act of defiance against the resurgence of Nazism” in Greece:

Here is my own transcript of Yanis Varoufakis’ full statement:

Ladies and gentlemen,

This morning – earlier today – I had the opportunity, the pleasure and the joy to outline to Minister Schäuble our government’s priorities for a functioning Greece in a prospering democratic European economic and monetary union. As Doctor Schäuble said, we didn’t reach an agreement, it was never on the cards that we would. We didn’t even agree to disagree from where I’m standing – from where I’m standing we agreed to enter into deliberations as partners with a joint orientation towards a European solution for European problems. A solution that is going to put, first and foremost, the interests of Europe at the helm. We didn’t discuss Greece’s debt schedule for repayments. We didn’t discuss a haircut. We set the scene for deliberations that will lead an approach that will put an end to this never-ending – seemingly never-ending – crisis that began in Greece then unfortunately spread out to the rest of the Eurozone.

Greece’s economic woes have been occupying the headlines for far too long. They have been begetting indignity in my nation, and frustration in this country as well as across Europe. It is time to draw a line. To put an end to it. My fellow Greeks wish nothing more than to end the gross indignity, and I’m sure that the people of Germany too would like to get on with concerns other than how to negotiate the latest twists and turns of the Greek saga. Some in Europe are tempted to imagine that the solution lies in separation. Thankfully, today I did not just visit the Finance Minister of Europe’s powerhouse economy, above all else I visited a European statesman for whom European unity is a lifelong project, and whose work and efforts to unify Europe I have been following with great interest since the 1980s.

Today my message to Minister Schäuble was that in our government – in this government – he has a potential partner in the search for European solutions to a variety of problems afflicting not only Greece, but the Union more broadly. Starting at home where one ought to start, our government will stop at nothing to combat not only corruption, tax evasion, tax immunity, inefficiency and waste, but also a whole political economy underpinning the ethos and the conventions of crippling rent seeking. In this endeavour, I told the minister, we need our partners’ technical, moral, political and institutional support.

Over the last five years, since Greece’s flimsy business model broke down, too much time, and too many hopes, lives even, have tragically been wasted. In 2010, Greece and Europe missed the splendid opportunity to come to terms with the facts. Instead, we treated an insolvency issue as if it were a problem of illiquidity. Therefore, the largest loan in history was granted to the most insolvent of European nations on condition that it shrinks its income. And to sell this grand error to voters in Greece, to voters in this country, in every corner of Europe, a list of reforms was announced that was just a fig leaf for in the end reforming very little that mattered. This could not end well. It is the reason we are here. It is the reason why the Greek people swept over the dominant parties in Greece and elected us. It is why we have been on the road in the last few days deliberating with our partners for the purpose of forging a common and European plan for putting things first – for putting things right.

My message to my German counterpart and to the people of Germany is simple. From our government you can expect a frenzy of reasonableness. You can expect proposals that are aimed, not at promoting the interests of the average Greek, but of promoting the interests of the average European: the average German, Slovak, Finn, Spaniard, Italian and so on. You can expect from us an unwavering commitment to telling it as it is, without any tactical stratagems or subterfuge. You can expect from us sound macroeconomic analysis and a readiness to implement efficient microeconomic reforms that work. These are our commitments. We are a government that hasn’t even been sworn in yet. What we request at this stage is perhaps the most precious of commodities: time. A short space of time during which our government can present to our partners, to the International Monetary Fund, to European Central Bank, to the European Commission, comprehensive proposals as well as a roadmap for the very short term – we call this “a bridging programme” – for the medium term, and indeed for the long term.

Europe is I believe at a crossroads. Europe must strike a balance between continuity and a need for respecting European agreements, and the necessity of evolving the rules. We must respect established treaties, agreements and processes, without crushing the fragile flower of democracy with a sledgehammer that takes the form of statements such as “elections do not change anything”.

When I visited Paris the other day I said that we were returning to one of Greece’s spiritual homes. Today we returned to another one of our spiritual homes. For almost two centuries the land of Goethe, Beethoven, Hegel, Kant has been a source of inspiration to Greeks whether they are rightists, leftists, centrists or simply intellectually curious Greeks. But there is more than that to the bonds binding our nations. As finance minister in a government facing, from day one, emergency circumstances caused by a savage debt deflationary crisis, I feel that the German nation is the one nation in Europe that can understand us better than anyone else. No-one understands better than the people of this land how a severely depressed economy combined with a ritual national humiliation and unending hopelessness can hatch the serpent’s egg within its society. When I return home tonight I shall find myself in a parliament in which the third largest party is not a neo-Nazi party, it is a Nazi party.

When our Prime Minister laid the wreath at the iconic memorial site immediately after his swearing in, that was an act of defiance against the resurgence of Nazism. German must and can be proud of the fact that Nazism has been eradicated here. But it is one of history’s most cruel ironies that Nazism is rearing its ugly head in Greece, a country which put up such fine struggle against it. We need the people of German on our side. We need the people of Germany to help us in the struggle against misanthropy. We need our friends in this country to remain steadfast in Europe’s post-war project that is: never again to allow a 1930s-like depression to divide proud European nations. We shall do our duty in this regard, and I am convinced that so will our European partners. Thank you.

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Additional:

Back in 2011, Yanis Varoufakis presented a very interesting TEDx talk entitled “A Modest Proposal for Transforming Europe” in which he outlined his own vision for a new kind of decentralized system that will be needed to transform the European Union before it crashes altogether:

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On February 7th, the Keiser Report returned to the victory of Syriza, warning Greece to beware bureaucrats and bankers bearing bailouts. In the second half, Max Keiser spoke with Kerry-Anne Mendoza about her new best-selling book, Austerity: The demolition of the welfare state and the rise of the zombie economy:

Click here to watch on the Russia Today website

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3 Comments

Filed under analysis & opinion, debt cancellation, Germany, Greece, Max Keiser

3 responses to “Greece’s new Finance Minister Varoufakis tells German counterpart Schäuble to “expect a frenzy of reasonableness”

  1. darren

    He came across as very genuine, and who can help think it anything other than a rallying cry, a chance for a new Europe, run by people who arent dinosaurs. Sat next to Dr Strangelove, the gulf between the old and the new was very apparent in the language they were using as well. Varoufakis shooting from the hip in easy understandable language, and Strangelove using the usual confusing language that sounds substantial but gives nothing of what is actually happening away. Wary of backing anything political due to past disappointments, its hard not to feel some form of optimism and hope it is all as it seems. This was one of the great speeches by Varoufakis, and me for one, has started to see a crack opening up in the wall of deceit and deception that has been in existence throughout my life thus far. Lets just hope those external forces dont crush it before it has had a chance to germinate because momentum can be a very powerful thing, as proven by Syriza’s election win. I do note though, in the widely read media forums, that the scale of Varoufakis’ speech hasnt even been insinuated. Maybe that will change in the coming days because it really is a cracker.

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  3. Marta

    Thanks for posting the Varoufakis video with your transcription. I hadn’t had the chance to watch the whole statement before (I’m not sure the mainstream media here in Spain have shown more than snippets of it) and it is truly impressive. Sadly it brings both hope and fear with it, because if, as seems likely, such a “frenzy of reasonableness” ends up being crushed, discontent in Europe is probably going to find much more frenzied and less reasonable outlets, as Varoufakis himself points out. Good luck to Greece and all of us.

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