Yanis Varoufakis is a political hybrid, perceived as so a dangerous radical by the financial powers of Europe that they forced his ouster as finance minister in the supposedly radical leftist government of Greek Prime Minister Alexis Tsipras, who had be voted into power precisely to resist that Troika of European Central Bank, the IMF, and the European Commission.
His term in office lasted less that six months, from 27 January to 6 July of 2015.
Varoufakis now serves as Professor of Economic Theory at the University of Athens and as private consultant for Bellevue, Washington, video game development and software distributor Valve Corporation. He’s also a prolific blogger and Twitterpater.
In a 3 August 2015 profile by Ian Parker of the New Yorker, Varoufakis described one incident during his brief tenure a Greek money manager:
At the White House, Varoufakis repeated a line that he had used at Brookings: “Mr. President, my government is planning, and I am planning, to compromise, compromise, and compromise, but we’re not going to be compromised.” (“He liked that,” Varoufakis recalled.) Varoufakis told him, “Mr. President, of course one has to suffer costs in order to get the benefits, but the question is the balance. There has to be a positive balance.” He went on, “We are being asphyxiated for trying to simulate what you did, right?”
Obama showed more solidarity than Varoufakis was expecting. “I know — austerity sucks,” Obama said. (“He used those words. Very un-Presidential.”) According to Varoufakis, the President was referring less to austerity’s unpleasantness than to its ineffectiveness. Obama meant that austerity “doesn’t work — it creates misery, and it’s self-perpetuating, and it’s self-defeating.”
Varoufakis told Obama that he hadn’t felt quite the same comradeship when speaking with the U.S. Treasury Secretary. “Jack Lew is not toeing the Obama line,” he said.
Lew’s views prevailed.
In the following interview for The Real News Network by Canadian lawyer, journalist, and environmental activist Dimitri Lascaris, Varoufakis details the pressure on Greece and the reasons he abandoned his office:
Yanis Varoufakis: How The Greek People’s Magnificent “No” Became “Yes”
From the transcript:
LASCARIS: Let’s talk a little bit about the future, what the future holds for Greece in particular. As you know, I’m sure all too painfully, the Syriza government has been implementing a series of so-called reforms at the insistence of the Troika, which many regard as being harsher than the terms previously dictated to the right-wing New Democracy-led government. And recently Alexis Tsipras, the prime minister, expressed the view that 2016 would mark the beginning of the end of the economic crisis in Greece. Do you think that that’s a realistic assessment in light of the nature and harshness of the austerity measures being implemented?
VAROUFAKIS: Dimitri, a simple one-word answer: no. Look. This program that was agreed in August, and which I voted against in Greek parliament, was designed to fail. There is precisely zero probability that it will succeed. The prime minister himself, Tsipras, said so back in August. He described the treaty that he signed, the agreement that he signed on [I think] the 13th of July, as a document that was extracted from him by coup d’etat. These were not my words. These were his.
Now, the great disagreement we had, we had this personally, as well, in a very comradely and friendly way, but it was nevertheless a strong, intellectual disagreement, was this. He said to me, and he said to the parliament, and he said to the public, that we have to accept this toxic, failed program that is never going to work, because if we don’t then the banks will never open again, and we’ll then have blood on the streets, more or less.
Well, what he intended to do was to introduce a parallel program, legislative program, comprising his own, his own government’s agenda for looking after the weak, sustaining those on very low pensions and income. A parallel program, he called it. So there is the [proposed] failed program, which is the price we have to pay according to Prime Minister Tsipras, for the surrender, the defeat. But we introduce a parallel program which justifies why you are staying in power to implement the toxic program.
Now, it is indeed the case that Prime Minister Tsipras and his government tried to do that. In early–late November, early December, they did table in Greek parliament the parallel program. Two days later, the president of the Euro Working Group, which is the effective functionary of the Troika, it came out and said, uh-uh, you have to withdraw that. And a Greek minister humiliated himself and the Greek government by making it sound as if it was his own idea that they should withdraw this parallel program. So this parallel program now has been withdrawn by the Greek government itself, at the behest of the Troika.
So even by the logic of the prime minister, the answer to your question is no.
If you’re curious about Varoufakis’s political and economic beliefs, here’s a December TED talk in which he expounds of a set of ideas that he believes is simultaneously libertarian, Marxist and Keynesian, via his post on Social Europe:
Why Capitalism Will Eat Democracy
Have you wondered why politicians aren’t what they used to be, why governments seem unable to solve real problems? Economist Yanis Varoufakis, the former Minister of Finance for Greece, says that it’s because you can be in politics today but not be in power — because real power now belongs to those who control the economy. He believes that the mega-rich and corporations are cannibalizing the political sphere, causing financial crisis. In this talk, hear his dream for a world in which capital and labor no longer struggle against each other, “one that is simultaneously libertarian, Marxist and Keynesian.”
A transcript of the talk is posted here.