logo
Weather page
GET THE APP
ePaper
google_play
app_store
  • Login
  • E-Edition
  • News
  • Sports
  • Obituaries
  • Opinion
  • Classifieds
    • Place an Ad
    • All Listings
    • Jobs
  • Special Sections
  • Photo Gallery
  • Contests
  • Lifestyle/Entertainment
  • Games
    • News
      • Local News
      • PA State News
      • Nation/World
    • Sports
      • Local
      • College Sports
      • State
      • National
    • Obituaries
    • Opinion
      • News
        • Local News
        • PA State News
        • Nation/World
      • Sports
        • Local
        • College Sports
        • State
        • National
      • Obituaries
      • Opinion
    logo
    • Classifieds
      • Place an Ad
      • All Listings
      • Jobs
    • E-Edition
    • Subscribe
    • Login
      • Classifieds
        • Place an Ad
        • All Listings
        • Jobs
      • E-Edition
      • Subscribe
      • Login
    Home News Greece readies for bailout talks as Plan B details revealed
    Greece readies for bailout talks as Plan B details revealed
    News, World
    July 27, 2015

    Greece readies for bailout talks as Plan B details revealed

    ATHENS, Greece (AP) — The Greek government was poised Monday for the imminent start of intricate bailout discussion but faced rebuke following revelations that former finance minister, Yanis Varoufakis, formed a secret committee to plan for the possible conversion of euros into drachmas “at a drop of a hat.”

    The talks have been delayed but are due to start Tuesday with technical teams paving the way for high-level discussions possibly by the end of the week.

    While the final touches were being put in place for the start of the technical talks in Athens, a recording of Varoufakis discussing a parallel currency plan was made public.

    Opposition parties have criticized Varoufakis and have urged Prime Minister Alexis Tsipras to explain to lawmakers what he knew of his former finance minister’s actions.

    In the recording of a telephone briefing for investors on July 16 in the wake of his resignation days earlier, Varoufakis claimed he and a childhood friend who was a computer expert hacked into his ministry’s computer systems as a first step to creating “a parallel banking system” in the event Greek banks were shuttered.

    The Greek banks were closed on June 29 to avoid a bank run amid fears that Greece was heading for a euro exit. In theory, a parallel system formed from the effective cloning of tax accounts would have allowed the finance ministry to continue payments in the form of so-called IOUs.

    Varoufakis said he had been authorized by Tsipras to undertake the planning prior to the general election in January when the radical left Syriza party swept to power. And he insisted that his actions were legal, in the public interest and aimed at keeping the country in the 19-country eurozone.

    In essence, the plan, which Tsipras ultimately blocked, would have created a “functioning parallel system” to give the government “some breathing space.”

    “It would be euro-denominated but at the drop of a hat it could be developed to a new drachma,” Varoufakis said.

    Varoufakis confirmed the authenticity of the recording, which was released by the briefing organizers, London-based Official Monetary and Financial Institutions Forum.

    The revelation that Varoufakis was working on a Plan B over Greece’s future was one of many in a wide-ranging discussion on the Greek crisis. He also said that German Finance Minister Wolfgang Schaeuble wanted Greece to leave the euro but that his boss, Chancellor Angela Merkel, was against so-called Grexit.

    The recording prompted an outcry among opposition parties.

    The main conservative opposition, New Democracy, accused Varoufakis of “dark methods that threaten democracy” and summoned Tsipras to brief parliament.

    Tsipras, who is already facing a revolt within his radical left Syriza over a raft of austerity measures required by creditors for the talks to actually begin, is under pressure to call early elections once the bailout discussions are completed.

    The technical discussions on a wide array of issues such as pensions and labor market reforms are designed to clear the path for high-level discussions between Greek ministers and senior European Union and International Monetary Fund officials later this week.

    After passing a series of reforms demanded by creditors, such as steep sales tax hikes, the Greek government is hoping negotiations will be completed by Aug. 20 when the country has a big debt repayment of around 3.2 billion euros ($3.5 billion) to make to the European Central Bank.

    Without the money from the expected three-year bailout totaling around 85 billion euros, Greece would be unable to make that payment — a development that would likely trigger fresh fears over the country’s future in the euro.

    But the reforms have come at a price for Tsipras. One in four of his lawmakers refused to back them in two votes in parliament, arguing that they flew in the face of Syriza’s anti-austerity platform in January’s election.

    The laws were passed with solid backing from pro-European opposition parties, but left Tsipras without an effective parliamentary majority. That has stoked talk of early elections, just six months into Tsipras’ four-year mandate.

    “We must seal the (bailout) agreement and immediately afterwards launch an electoral process,” said senior Syriza official Dimitris Vitsas, who is the deputy defense minister. “After that (there will be) a new government with a fresh mandate.

    Mina Andreeva, a spokeswoman at the European Commission, said teams from the institutions are “now already on the ground in Athens and work is starting immediately.”

    She added that, while Athens has already delivered “in a timely and overall satisfactory manner” the reforms demanded for the talks to start, more will be required to secure a swift rescue loan disbursement.

    “And this is also what is being discussed right now.”

    Greece has relied on bailout funds for a little more than five years after being locked out of international bond markets. In return for around 240 billion euros worth of rescue money, successive Greek governments have had to enact a series of income cuts, tax hikes and economic reforms.

    Though the measures drastically contained budget overspending, they hit economic activity hard and drove unemployment to record peacetime highs. And because the Greek economy is around 25 percent smaller than it was, the country’s debt burden has increased to around 170 percent of Greece’s annual GDP.

    Some sort of debt relief for Greece is up for negotiation though a direct cut in the amount owed is off the agenda. The IMF has said Greece needs big relief and has advocated delaying Greek debt repayments to European creditors for many years.

    ECB executive board member Benoit Coeure said in an interview published Monday that Greek debt relief “is no longer a matter of debate” but must come alongside measures to turn the Greek economy around.

    “In truth, the question is not whether Greek debt should be restructured, but how to do it so it really benefits the country’s economy,” he told French daily Le Monde.

    ___

    Raf Casert in Brussels and Geir Moulson in Berlin contributed.

    Tags:

    business debt and bond markets economy elections financial crisis financial markets financial services general news government and politics government business and finance government finance industries parliamentary elections
    MENELAOS HADJICOSTIS and NICHOLAS PAPHITIS

    The Bradford Era

    Local & Social
    Latest news for you
    Talks at crunch time over budget, legalizing marijuana, taxing skill games
    Local News, PA State News
    Talks at crunch time over budget, legalizing marijuana, taxing skill games
    By MARC LEVY Associated Press 
    June 16, 2025
    HARRISBURG (AP) — Pennsylvania Gov. Josh Shapiro and state lawmakers are getting down to crunch time, with big questions still outstanding about how t...
    Read More...
    {"to-print":"To print", "bradfordera-website":"Website"}
    Settlement in opioid litigation reached with Purdue Pharma, Sacklers
    Nation & World, PA State News
    Settlement in opioid litigation reached with Purdue Pharma, Sacklers
    By CHRISTINA LENGYEL The Center Square 
    June 16, 2025
    HARRISBURG – Pennsylvania is closing another chapter in its quest to provide justice for millions of victims of the opioid epidemic. Attorney General ...
    Read More...
    {"to-print":"To print", "bradfordera-website":"Website"}
    What’s wrong with enforcing the law?
    Comment & Opinion, Opinion
    What’s wrong with enforcing the law?
    By SUSAN SHELLEY Los Angeles Daily News 
    June 16, 2025
    LOS ANGELES (TNS) — President Donald Trump is enforcing immigration law, and for the first time in many decades immigration enforcement does not resem...
    Read More...
    {"to-print":"To print", "bradfordera-website":"Website"}
    What’s ahead in Pennsylvania’s state budget fight
    Comment & Opinion, Opinion
    What’s ahead in Pennsylvania’s state budget fight
    By MARK NICASTRE RealClearPennsylvania 
    June 16, 2025
    Pennsylvania's budget process is a byzantine effort that is critical to the functioning of the commonwealth but largely ignored by the public. The new...
    Read More...
    {"to-print":"To print", "bradfordera-website":"Website"}
    St. Marys police report fatal crash
    Local News
    St. Marys police report fatal crash
    June 16, 2025
    ST. MARYS — Police report a Dagus Mines woman died Saturday as the result of a two-vehicle crash on South St. Marys Street. At approximately 4:45 p.m....
    Read More...
    Local oil purchasers increase prices
    Business, Local News
    Local oil purchasers increase prices
    June 16, 2025
    Two local oil purchasers have increased the price they will pay for Penn grade crude oil. Effective Friday, American Refining Group and Ergon Oil Purc...
    Read More...
    {"to-print":"To print", "bradfordera-website":"Website"}
    ePaper
    google_play
    app_store
    This Week's Ads
    Current e-Edition
    ePaper
    google_play
    app_store
    Already a subscriber? Click the image to view the latest e-edition.
    Don't have a subscription? Click here to see our subscription options.
    Mobile App

    Download Now

    The Bradford Era mobile app brings you the latest local breaking news, updates, and more. Read the Bradford Era on your mobile device just as it appears in print.

    ePaper
    google_play
    app_store
    Trending Recipes

    Help Our Community

    Please help local businesses by taking an online survey to help us navigate through these unprecedented times. None of the responses will be shared or used for any other purpose except to better serve our community. The survey is at: www.pulsepoll.com $1,000 is being awarded. Everyone completing the survey will be able to enter a contest to Win as our way of saying, "Thank You" for your time. Thank You!

    Get in touch with The Bradford Era
    Submit Content
    • Submit News
    • Letter to the Editor
    • Place Wedding Announcement
      • Submit News
      • Letter to the Editor
      • Place Wedding Announcement
    Advertise
    • Place Birth Announcement
    • Place Anniversary Announcement
    • Place Obituary Call (814) 368-3173
      • Place Birth Announcement
      • Place Anniversary Announcement
      • Place Obituary Call (814) 368-3173
    Subscribe
    • Start a Subscription
    • e-Edition
    • Contact Us
      • Start a Subscription
      • e-Edition
      • Contact Us
    CMG | Community Media Group
    Illinois
    • Hancock Journal-Pilot
    • Iroquois Times-Republic
    • Journal-Republican
    • The News-Gazette
      • Hancock Journal-Pilot
      • Iroquois Times-Republic
      • Journal-Republican
      • The News-Gazette
    Indiana
    • Fountain Co. Neighbor
    • Herald Journal
    • KV Post News
    • Newton Co. Enterprise
    • Rensselaer Republican
    • Review-Republican
      • Fountain Co. Neighbor
      • Herald Journal
      • KV Post News
      • Newton Co. Enterprise
      • Rensselaer Republican
      • Review-Republican
    Iowa
    • Atlantic News Telegraph
    • Audubon Advocate-Journal
    • Barr’s Post Card News
    • Burlington Hawk Eye
    • Collector’s Journal
    • Fayette County Union
    • Ft. Madison Daily Democrat
    • Independence Bulletin-Journal
    • Keokuk Daily Gate City
    • Oelwein Daily Register
    • Vinton Newspapers
    • Waverly Newspapers
      • Atlantic News Telegraph
      • Audubon Advocate-Journal
      • Barr’s Post Card News
      • Burlington Hawk Eye
      • Collector’s Journal
      • Fayette County Union
      • Ft. Madison Daily Democrat
      • Independence Bulletin-Journal
      • Keokuk Daily Gate City
      • Oelwein Daily Register
      • Vinton Newspapers
      • Waverly Newspapers
    Michigan
    • Iosco County News-Herald
    • Ludington Daily News
    • Oceana’s Herald-Journal
    • Oscoda Press
    • White Lake Beacon
      • Iosco County News-Herald
      • Ludington Daily News
      • Oceana’s Herald-Journal
      • Oscoda Press
      • White Lake Beacon
    New York
    • Finger Lakes Times
    • Olean Times Herald
    • Salamanca Press
      • Finger Lakes Times
      • Olean Times Herald
      • Salamanca Press
    Pennsylvania
    • Bradford Era
    • Clearfield Progress
    • Courier Express
    • Free Press Courier
    • Jeffersonian Democrat
    • Leader Vindicator
    • Potter Leader-Enterprise
    • The Wellsboro Gazette
      • Bradford Era
      • Clearfield Progress
      • Courier Express
      • Free Press Courier
      • Jeffersonian Democrat
      • Leader Vindicator
      • Potter Leader-Enterprise
      • The Wellsboro Gazette
    © Copyright The Bradford Era 43 Main St, Bradford, PA  | Terms of Use  | Privacy Policy
    Powered by TECNAVIA