The Reform & Fiscal Policy Proposals of my ministry a year to this day – compare & contrast

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A year to this day (11th May 2015), my team of international advisers (*) and I submitted this proposal for reforming the Greek economy, including a particular proposal for a debt reschedule. It is interesting to compare and to contrast it with the agreement that the troika is about to impose on the Athens government.

(*) My team included: James K. Galbraith (University of Texas at Austin), Jeff Sachs (Columbia University, Special Advisor to the UN’s Secretary General) ,Lord (Norman) Lamont (formerly Britain’s Chancellor of the Exchequer) Mariana Mazzucato (University of Sussex, and author of The Entrepreneurial State), Thomas Mayer (Director, Flossbach-von-Storch, formerly Chief Economist, DB) and Larry Summers (Harvard University, formerly US Treasury Secretary)

To read the proposals click on the image above or just click here


  • There is no comparison of the measures, which would be useful. You have simply appended your proposals that Eurogroup refused even to discuss in their colonialist mentality towards Greece. As a program, it is just a general outline. Most of it sensible, except in my view the matter of the debt relief, which was too mild.

    In fact, Eurogroup sees Greece as their colony and wants to extract from Greece the maximum possible for their loan repayment. I am sure that you will agree that the PSI+ was a disaster in many ways. The worst aspect was keeping Greece technically solvent by Ponzi bailout loans that make the EU governments almost the sole creditors of the Greek state. In effect, Greece has become their colony.

    EU Politicians will never see debt in terms of corporate restructuring or cash flow. The matter has been dangerously politicized. I am sympathetic with your logic to democratize the EU, but in practice this as unlikely as your attempt to discuss rationally macroeconomics and debt with Eurogroup as if it were possible to have open policy debate in the EU.

    I see the only hope for Greece right now as BREXIT and EU partial break up. Rigid, overly centralized structures like the EU are open to fragility in case of sudden adverse events. A period of chaos is likely to follow, but there is not really any alternative as you have already proved last year, trying tor reason with Eurogroup.

    The EU is not reformable!!!

    • I couldn’t agree more with what you are saying about the post-PSI debt-colony regime enforced on Greece by the €Z-IMF Axis, which – as Yanis has already admitted – is indifferent to “maximum” or optimal “loan repayment”, let alone economic “recovery”, restoration of “competitiveness”, debt “sustainability” etc. etc.

      So unfortunately, the name of the game is not “extend and pretend” anymore – it never was.

      The name of the game is “extend and… demolish, destroy, crush, wipe out of the map, entirely…” to build the most inhuman kind of supranational Fascism Orwell had ever dreamt of, on a European and global scale.
      And Yanis knew that very well – better than Tsipras, in fact – right from the outset.

      However, his window of opportunity to halt the Greek spiral of death, was shut down on his face by the troika in the four days of 20-24 February 2015, at a moment when world public opinion had surged in support of the Greek people.

      Instead of walking out of the Thomsen-Lagarde trap, to denounce their ultimatum there and then, Yanis made the fateful choice to …extend and pretend – literally. And the troika played along with him, to “pretend” there was anything else on the table to “negotiate”, other than the leftovers from MoU2, which even Samaras had refused to “complete”.

      But, since March 2015, there was really no alternative for Yanis, but to “extend and pretend” that he was a “holier than thou (Schaeuble)” radical pan-Europeanist democrat, whereas for the troika, there was never an alternative to extend and… demolish, destroy, crush, wipe Greece out of the map, entirely… and now, with a vengeance.

  • Just two weeks ago, the U.S. Treasury Department announced that the U.S. had placed five countries on a monitoring list for potential currency manipulation: China, Japan, Korea, Taiwan and Germany. The report noted that Germany has built up a significant bilateral trade surplus with the U.S., in addition to holding the second largest current account surplus in the world, at approximately 8.3 percent of GDP, according to an April OECD report. It isn’t currency manipulation that has Germany on this monitoring list. It is the fact that as European and Chinese demand for German products has fallen, the U.S. has become the destination for Germany’s exports in order to make up the difference.

  • “And so my conclusion here is that these imbalances will only shift in a crisis – like the one we experienced within the eurozone. Except next time, the crisis will be global. It would be nice to think that world leaders would understand that dangerous imbalances are building that feed a populist and violent political response. Alas, there is no indication that the Germans or any other net surplus country gets this. And while the Swiss and the Dutch are small trading nations, Germany is a global behemoth. Like China, it will attract negative attention when the economy turns down. And the Germans will get the blame when the trade barriers go up. Right now, it seems only a matter of when not if.”

  • Very interesting just recently to see Kyriakos Mitsotakis criticizing Eurogroup and their extraordinary surplus demands as well as this shame debt relief by instalments!!! Even New Democracy seem to see what is ahead for Greece….

    The same Kyriakos who was trashing Yanis last year, when Yanis was finance minister struggling with this looming time bomb as and Kyriakos supporting Eurogroup!!! Kyriakos who timidly accepted all the repressive deflationary measures of the Samaras government and the dramatic capitulation last summer that included these measures. Of course, Kyriakos is hardly going to get any better reception than Yanis in Brussels on these matters.

    • Kyriakos Mitsotakis is just blowing bubbles in an occupied parliament. Nobody believes him.