‘Greatest disaster’: Varoufakis says new Greek bailout doomed

yanis_varoufakisFormer Greek Finance Minister Yanis Varoufakis has warned that the economic reforms from Greece’s debt holders are doomed to fail. The assessment comes as PM Alexis Tsipras has reshuffled his cabinet in efforts to secure a third bailout package.
The EU is preparing to start talks with Athens on a third bailout which could reach €86 billion ($93 billion), but the reform program laid down by Brussels as a precondition for the bailout will “go down in history as the greatest disaster of macroeconomic management ever,” Varoufakis told BBC.

“This programme is going to fail whoever undertakes its implementation,” he said. Asked when will it fail, he replied, “It has failed already.”

Varoufakis stressed that in given conditions Prime Minister Alexis Tsipras, who himself does not believe in the bailout, had little option but to sign the agreement. “We were given a choice between being executed and capitulating. And he decided that capitulation was the ultimate strategy,” Varoufakis said. read more