DEFEAT FROM THE JAWS OF VICTORY
Finance minister forced out hours after celebrating referendum win
ATHENS: Greek Finance Minister Yanis Varoufakis yesterday fell on his sword in the latest shock twist to the country’s debt drama.
His resignation came despite the fact that voters decisively sided with the Greek Government and rejected austerity proposals in a controversial referendum.
The shock announcement came as European leaders scrambled for a response to the “No” vote as the country teetered on the edge of crashing out of the eurozone.
European leaders had reacted with a mix of dismay and caution to the figures released by the Greek interior ministry showing the final tally in the referendum at 61.31 per cent “No” and 38.69 per cent “Yes”, with turnout at 62.5 per cent.
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, a victory for Greece’s radical leftwing Prime Minister Alex Tsipras, who insisted it did not mean a “rupture” with Europe.
European Union president Donald Tusk said an emergency eurozone summit would be held later today.
The resignation of Mr Varoufakis, who was as an economics lecturer at the University of Sydney from 1989 to 2000, was seen by many commentators as clearing the way for fresh talks between Greece and its European creditors.
The fina finance minister had made inflammatory statements prior to the referendum in which he accused the country’s creditors of economic “terrorism”.
Mr Varoufakis said he was standing down after he was told his departure would be “potentially helpful” to Prime Minister Tsipras in re-opening negotiations.
“For this reason I am leaving the Ministry of Finance,” he said. “I shall wear the creditors’ loathing with pride,” he added, saying that he fully supports the Prime Minister and the Government.
French Finance Minister Michel Sapin said yesterday there was still a basis for talks with Greece and urged the Greek Government to make proposals so that negotiations can restart.
If Greece makes serious, solid proposals and European countries offer concessions there is a basis for discussions, Mr Sapin said.
“It’s up to the Greek Government, the Greek Prime Minister Alexis Tsipras to make proposals as quickly as possible,” Mr Sapin added.
“The basis for dialogue is on the table but it is up to Greece to show it takes that seriously.”
I shall wear the creditors' loathing with pride
YANIS VAROUFAKIS