Former Greek finance minister Yanis Varoufakis has denounced the new rescue plan for Greece as a modern version of the Versailles Treaty that heaped economic humiliation on Germany after its defeat in World War I.
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Yanis Varoufakis told the BBC on Saturday that Greece was subject to a programme that will “go down in history as the greatest disaster of macroeconomic management ever”.
The German parliament approved the opening of negotiations on Friday after the Greeks agreed to introduce an austerity package in exchange for a promised bailout of up to €86 billion (£60 billion).
Varoufakis became a darling of the worldwide left for describing bailouts as “fiscal waterboarding” and for opposing austerity measures sought by the Troika. “And he decided that capitulation was the optimal strategy”.
In an interview with the BBC, Mr Varoufakis said the reforms that Greece had been asked to carry out would fail regardless of who implemented them.
Speaking to Radio National’s Phillip Adams in his first post-resignation interview, Varoufakis also said he “jumped more than he was pushed” when he resigned from the ministry.
After the announcement, prime minister Alexis Tsipras (pictured) called on MPs to remain united given how serious the situation is.
“If our party, Syriza, has cultivated so much hope in Greece… if we betray this hope and bow our heads to this new form of postmodern occupation, then I can not see any other possible outcome than the further strengthening of Golden Dawn“. However, Eurogroup president Jeroen Dijsselbloem has warned that the process will not be easy, and that negotiations could last up to four weeks.
Meanwhile, Greek banks are set to reopen Monday after a three-week closure and withdrawal limits have been relaxed, but capital controls remain in place, a government decree said on Saturday.
But the decree stated that the weekly withdrawal limit should be a maximum €420.
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It means Greece will now be able to repay debts to two of its creditors – the European Central Bank and worldwide Monetary Fund – due tomorrow.
