Varoufakis replies concerning his 'Plan B' for transition to national currency

Gazzetta team 27 Ιουλίου 2015 - 18:52

Replying to a storm of media criticism concerning his recently unveiled 'Plan B' for a possible transition to a national currency and parallel banking system, former finance minister Yanis Varoufakis on Monday issued an announcement saying that the finance ministry would have been "remiss" if it had failed to to draw up such contingency plans.

The announcement confirmed that a finance ministry Working Group had been set up for this purpose, at the behest of the prime minister, coordinated by Prof. James K. Galbraith. It also attached a note by Galbraith saying that the Working Group had essentially concluded its work by May, "with a long memorandum outlining major issues and scenaria that we studied."

In his announcement Varoufakis pointed out that the Bank of Greece (which had a draft legislative decree for a bank holiday already prepared), the European Central Bank (ECB), the European Union member-state treasuries, banks and international organisations all had such plans since 2012 and that, prior to his confirmation that such a working group existed, he had been "widely criticized widely for having neglected to make such contingency plans."

In the wake of the revelations, however, "the media have indulged in far-fetched articles that damage the quality of public debate," the minister's announcement added.

"The Ministry of Finance’s Working Group worked exclusively within the framework of government policy and its recommendations were always aimed at serving the public interest, at respecting the laws of the land, and at keeping the country in the Eurozone," it stressed.

Regarding the efforts to use the tax office online system taxisnet as the basis of a parallel payments system, Varoufakis said that he had clearly described during the handover ceremony at the finance ministry on July 6 and stressed that this was not part of the remit of the finance ministry's Working Group.

This project had been presented in full to the Cabinet and Varoufakis considered that it should "be implemented independently of the negotiations with Greece’s creditors, as it will contribute considerable efficiency gains in transactions between the state and taxpayers, as well as between taxpayers," the announcement said.

"In conclusion, during the five months of negotiations that gripped Europe and changed the debate throughout the Continent, the Ministry of Finance did everything possible to serve the public interest against many odds. The current media campaign to besmirch these efforts will fail to dent the legacy of a crucial five-month struggle for democracy and common sense," it added.