ABCradioAustralia.jpg

 

 

Greek finance minister

 

Yanis Varoufakis Resigns

 

after 'No' vote triumph

 

 

ABC, Australia, 6 July 2015

 

Greek finance minister Yanis Varoufakis has resigned, just hours after his
government won victory in a bailout referendum which could splinter Europe.

 

Mr Varoufakis, a joint Greek-Australian citizen who taught at Sydney
University for more than a decade, said he was standing aside at the request
of prime minister Alex Tsipras.

 

It came after more than 60 per cent of Greeks voted to reject the terms of a
eurozone bailout which would have imposed more austerity measures on an
already ravaged economy.

 

In a statement on his blog, Mr Varoufakis said he had been "made aware" that
some members of the eurozone considered him unwelcome at meetings of finance
ministers, "an idea the prime minister judged to be potentially helpful to
him in reaching an agreement".

 

"For this reason I am leaving the ministry of finance today," he said.

 

Mr Varoufakis infuriated Greece's European partners last week when he
accused creditors of using "terrorism" against the Greek people to
intimidate them into accepting more austerity.

 

"I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the
capital that the Greek people granted us through yesterday's referendum," Mr
Varoufakis said.

 

"And I shall wear the creditors' loathing with pride."

 

He warned that the referendum result "comes with a large price tag
attached... like all struggles for democratic rights".

 

"The great capital bestowed upon our government [must be] invested
immediately into a YES to a proper resolution," he said.

 

'No' supporters celebrated Sunday's victory, but Greece is now in uncharted
waters: risking a banking collapse that could force it out of the euro.

 

Mr Varoufakis called for a deal that involved "debt restructuring, less
austerity, redistribution in favour of the needy, and real reforms."

 

His straight-talking style produced notable moments including his
characterisation of the austerity imposed on Greece as "fiscal
waterboarding".

 

After negotiations broke down between Greece and its creditors, Mr
Varoufakis slammed Europe's governance.

 

"This is not the way to run a monetary union. This is a travesty. It's a
comedy of errors for five years now, Europe has been extending and
pretending," he said in a BBC interview.

 

Maverick minister dubbed 'Greece's Bruce Willis'

 

As finance minister Mr Varoufakis shook up the staid world of EU summits by
arriving to meetings in leather jackets and untucked shirts. He was quickly
dubbed "Greece's Bruce Willis".

 

His swagger and penchant for lecturing annoyed some EU counterparts at
meetings on Greece's debt and he was eventually pulled from frontline
negotiations.

 

Though the maverick minister has always taken a stance protecting ordinary
Greeks, his background was anything but common.

 

He is the son of Giorgos Varoufakis, who at 90 still heads one of Greece's
leading steel producers, Halyvourgiki. He also attended the Moraitis School,
which has alumni including prominent Greek leaders and artists.

 

His early career was spent at the English universities of Essex, East Anglia
and at Cambridge, and he has often been linked with research into game
theory.

 

Mr Varoufakis moved to Australia in the late 1980s and lectured at Sydney
University for more than a decade. He is a dual Greek-Australian citizen.

 

He moved back to Greece in 2000 to teach at the University of Athens, and in
January 2013 accepted a post at the University of Texas in Austin.

 

Greece on the brink as 'No' supporters celebrate

 

Thousands of people in Athens gathered to celebrate the 'No' vote on Sunday
night, punching the air, kissing and cheering.

 

"Spain, and then Portugal, should follow this path. We're for a Europe of
the people," said Giorgos, 25, brushing off concerns the result could see
the debt-laden country plunge further into the financial mire.

 

But the mood of jubilation was not shared by all 'No' voters, with some
saying they had been confronted with an impossible choice.

 

Greece is now teetering on the brink of financial collapse. If it does not
receive cash and loans soon from European institutions, it could be forced
to resort to government IOUs or a return to the drachma to keep its economy
running.

 

In a televised address after the referendum, Mr Tsipras insisted the vote
did not mean a break with Europe. He has emphasised that euro membership is
meant to be "irreversible", with no legal avenue to boot a country out.

 

"This is not a mandate of rupture with Europe, but a mandate that bolsters
our negotiating strength to achieve a viable deal," he said.

 

Mr Tsipras said the creditors would now finally have to talk about
restructuring the 240 billion euro ($390 billion) debt Greece owes them.

 

The euro rose after Mr Varoufakis's announcement, which was expected to
renew hopes that the creditors - the European Central Bank, the European
Commission and the International Monetary Fund (IMF) - could be persuaded
back to the negotiating table despite the country's decisive rejection of
the reforms they were demanding in return for the release of a final tranche
of bailout funds.

 

German chancellor Angela Merkel was to meet with French leader Francois
Hollande in Paris amid a flurry of other meetings to size up the
implications of the vote.

 

With the ramifications still unclear and some analysts putting the chances
of a Greek exit from the eurozone at "very high", European Commission head
Jean-Claude Juncker is set to hold a teleconference with ECB chief Mario
Draghi, Mr Tusk and Eurogroup head Jeroen Dijsselbloem.

 

German and French finance ministers are set for talks beginning in Warsaw at
7:00pm (AEST), while the Euro Working Group of top treasury officials will
meet in Brussels.

 

European Union president Donald Tusk said an emergency eurozone summit would
be held on Tuesday.

 

ABC/wires

 

From:
http://www.abc.net.au/news/2015-07-06/greek-finance-minister-yanis-varoufaki
s-resigns/6598610

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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