Varoufakis: Greek Deal Is "Coup", Turns Greece Into "Vassal" State, And Deals "Decisive Blow" To European Project

Tyler Durden's picture

Yanis Varoufakis, fresh off a few relaxing days at his island getaway, will be back in the Greek parliament this week to weigh in on the "compromise" deal his successor Euclid Tsakalotos and PM Alexis Tsipras struck in Brussels over the weekend.

Considering the eyewitness accounts of the highly contentious Eurogroup meeting - out of which came the exceedingly punitive term sheet which would serve as the basis for Greece's agreement with creditors - one can only imagine what might have unfolded if Varoufakis had been present for the "crazy kindergarten" finance minister free-for-all which reportedly took place on Saturday night. 

For those curious to know what Yanis thinks about the deal, below are some "impressionistic thoughts" from the man himself. Highlights include the characterization of the Greek deal as a "decisive blow against the Euorpean project", a "statement confirming that Greece acquiesces to becoming a vassal of the Eurogroup", and the "culmination of a coup".

*  *  *

On the Euro Summit’s Statement on Greece: First thoughts via Yanis Varoufakis

In the next hours and days, I shall be sitting in Parliament to assess the legislation that is part of the recent Euro Summit agreement on Greece. I am also looking forward to hearing in person from my comrades, Alexis Tsipras and Euclid Tsakalotos, who have been through so much over the past few days. Till then, I shall reserve judgment regarding the legislation before us. Meanwhile, here are some first, impressionistic thoughts stirred up by the Euro Summit’s Statement.

  • A New Versailles Treaty is haunting Europe – I used that expression back in the Spring of 2010 to describe the first Greek 'bailout' that was being prepared at that time. If that allegory was pertinent then it is, sadly, all too germane now.
  • Never before has the European Union made a decision that undermines so fundamentally the project of European Integration. Europe’s leaders, in treating Alexis Tsipras and our government the way they did, dealt a decisive blow against the European project.
  • The project of European integration has, indeed, been fatally wounded over the past few days. And as Paul Krugman rightly says, whatever you think of Syriza, or Greece, it wasn’t the Greeks or Syriza who killed off the dream of a democratic, united Europe.
  • Back in 1971 Nick Kaldor, the noted Cambridge economist, had warned that forging monetary union before a political union was possible would lead not only to a failed monetary union but also to the deconstruction of the European political project. Later on, in 1999, German-British sociologist Ralf Dahrendorf also warned that economic and monetary union would split rather than unite Europe. All these years I hoped that they were wrong. Now, the powers that be in Brussels, in Berlin and in Frankfurt have conspired to prove them right.
  • The Euro Summit statement of yesterday morning reads like a document committing to paper Greece’s Terms of Surrender. It is meant as a statement confirming that Greece acquiesces to becoming a vassal of the Eurogroup.
  • The Euro Summit statement of yesterday morning has nothing to do with economics, nor with any concern for the type of reform agenda capable of lifting Greece out of its mire. It is purely and simply a manifestation of the politics of humiliation in action. Even if one loathes our government one must see that the Eurogroup’s list of demands represents a major departure from decency and reason.
  • The Euro Summit statement of yesterday morning signalled a complete annulment of national sovereignty, without putting in its place a supra-national, pan-European, sovereign body politic. Europeans, even those who give not a damn for Greece, ought to beware.
  • Much energy is expended by the media on whether the Terms of Surrender will pass through Greek Parliament, and in particular on whether MPs like myself will toe the line and vote in favour of the relevant legislation. I do not think this is the most interesting of questions. The crucial question is: Does the Greek economy stand any chance of recovery under these terms? This is the question that will preoccupy me during the Parliamentary sessions that follow in the next hours and days. The greatest worry is that even a complete surrender on our part would lead to a deepening of the never-ending crisis.
  • The recent Euro Summit is indeed nothing short of the culmination of a coup. In 1967 it was the tanks that foreign powers used to end Greek democracy. In my interview with Philip Adams, on ABC Radio National’s LNL, I claimed that in 2015 another coup was staged by foreign powers using, instead of tanks, Greece’s banks. Perhaps the main economic difference is that, whereas in 1967 Greece’s public property was not targeted, in 2015 the powers behind the coup demanded the handing over of all remaining public assets, so that they would be put into the servicing of our un-payble, unsustainable debt.

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JustObserving's picture

Of course it is a coup:

Prime Minister Alexis Tsipras has signed up to an agreement that transforms Greece into a de facto colony of the European Union and places the country under the dictates of Germany.

What remains of the Greek economy, above all its most valuable assets, is to be pillaged so that Athens can continue to pay back loans from the EU, the European Central Bank and the International Monetary Fund.

Greece is to be placed under the direct control of EU officials. The function of Greece’s parliament will be to rubber-stamp the transfer of real authority to Brussels and Berlin. It has until Wednesday to pass a series of laws implementing the demands of German imperialism and the EU.

Haus-Targaryen's picture

If this doesn't set off a revolution in Greece, likely nothing would.  

The Sheep is strong in the Greeks.  

JustObserving's picture

Hope the deal gets rejected:

In his first interview since resigning earlier this month, former Greek finance minister Yanis Varoufakis has described the 86 billion euro bailout deal agreed to by prime minister Alexis Tsipras as ‘a new Versailles Treaty’.

‘This is the politics of humiliation,’ he told Late Night Live. ‘The troika have made sure that they will make him eat every single word that he uttered in criticism of the troika over the last five years. Not just these six months we’ve been in government, but in the years prior to that.  

In the coup d’état the choice of weapon used in order to bring down democracy then was the tanks. Well, this time it was the banks. The banks were used by foreign powers to take over the government. The difference is that this time they’re taking over all public property.

hedgeless_horseman's picture



This isn't nearly as big a coup as the Federal Reserve Act was in 1913.  Not even close.

Occident Mortal's picture

The Greek economy has already contracted by 25%.


Now Greece must place assets worth 25% of it's GDP into an escrow account so that it can be liquidated by the EU.


Why are they accepting this? This is an act of war.

y3maxx's picture

Where's NIgel Farage when you need him?

Hugh_Jorgan's picture

This story brings me back to the instance where the EU installed Matteo Renzi as Italian PM. Is there no one else who thinks that the IMF and ECB are keeping the EU afloat simply to let each sick country fail economically one by one so they can play benefactor and eventually gain control of all of Europe through economic sanction? It looks like this is the model for a slow slide into complete  global economic tyranny over the course of the next 50-100 years. As if no one will notice these things? or maybe by the time they notice it happening to them, it's too late? I don't think this stuff will stand for long...

Ploutos74's picture

A coup is replacing a government with another of your choice. They capitulated to stay in power

froze25's picture

So, do you think the Greek leadership has even considered doing an "Iceland"?  I would rather 2 years of pain than a 100 of it.

FreeMoney's picture

The Greeks are like crack whores only wanting to spend money they dont have.  They cant borrow from the banks, they cant borrow from their friends and family anymore.  now they are at the pawn shop and geting raped for it.  This is the end of the road for deficit spending.

ebworthen's picture

Add the rest of Europe and the U.S. to that list, Greece is just the first to run short (well, Cyprus).

End Central Banking and hang the banksters and complicit politicians!

MsCreant's picture

You forgot the part where she was in financial trouble when you met her, you told her you could help her, then you got her addicted. This is the part where you are trying to get her to turn tricks for you. She is so addicted she does not think she can leave you.

ThroxxOfVron's picture

"You forgot the part where she was in financial trouble when you met her, you told her you could help her, then you got her addicted. This is the part where you are trying to get her to turn tricks for you. She is so addicted she does not think she can leave you. "


THIS is the part that makes me the angriest.

It is the young people of Greece that are in fact being heartlessly prostituted and indentured to rough foreign johns by their own parents and grandparents.

froze25's picture

Nailed it, fear is being used every where here.  

“I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.” 
Frank HerbertDune

Anusocracy's picture

All governments that find that they can't steal more from the current productive class will steal from future productive classes.

PhoQ's picture

The problem is that the productive classes are slowly ending their production, strangling the snake with its own delicious tail.

The.Harmless.Jew's picture



"Why are they accepting this? This is an act of war."



Honestly, I think they bottled it.  


Consider this, they feel that if they say "OXI" or NO to all this, then any greek with Euros in his/her hand or in savings would be gone. All trade would stop, all transactions would stop.  It would be the great reset. Back to the stone age. 


Now, you and I and some others in ZH would use a great reset as a great oppertunity to start afresh, to build a cleaner society and so on, but the pain for these people is too much.  


I can understand that, I certainly won't judge. 


OM, consider this, you'd wake up one morning and all your cash, savings, pension pot (if you have any from this list gone). Then, if you had a mortgage on your home, you won't know if your home is still your home under the current conditions. Then, there's no more electric or gas or water, or sewage, and so on....


Imagine that for a second. and it would all happen so quickly. 


The problem is we've ceded too much control that we've allowed ourselves to be captives of a terrible system (some say it is progress!).


Yes, there are solutions, of course there are.  You can get around the mortgage situation by nationalising the banks etc... but all these things take time.  and in an age of "instant" - who has time? 



the late idi armin's picture

cos that was the trap. as a greek (or a italian or spanish or other) politician you got to go brussels, mix with other EU politicians, be somebody, not just a hack skimming local roading contracts. The German elite knew that and brought themselves legitimacy as good europeans while putting the german taxpayer on the hook.  

the late idi armin's picture

cos that was the trap. as a greek (or a italian or spanish or other) politician you got to go brussels, mix with other EU politicians, be somebody, not just a hack skimming local roading contracts. The German elite knew that and brought themselves legitimacy as good europeans while putting the german taxpayer on the hook.  

AgeOfJefferson's picture

That's why it's time to take action now before the US becomes like Greece!

'Restoring the Lost Republic' (of the United States of America). - Contains full details about the fraud that is the Federal Reserve and how to stop them!!J5EEXCDK!_LD4hgaBI3aUqqJc2Ng14A (PDF)

Once on the MEGA website, double-click on the PDF filename to download it directly.

Spread the word.

illyia's picture

"The Child of the Creature from Jekyll Island" ....

PermaBug's picture

The deal might actually be rejected.

The pundits following the politics in Greece seem to think otherwise, but I have a feeling the deal is so bad for the Greeks that they might just decide that there's no point.

Which is, of course, what the fiscally responsible nations of the EZ want, for Greece to choose to leave rather than being thrown out, as they don't really have a legal way to do that, and besides, they don't want to be seen as responsible for the hardships Greeks will face after they leave.

Of course Greece should leave and go back to the drachma, and they will muddle along as a completely failed welfare state like Cuba for the next 50 or 100 years.

It will make a nice cheap vacation spot for those very few of us still living in countries that have half-way decent economies and currencies.

Antifaschistische's picture

"What remains of the Greek economy, above all its most valuable assets, is to be pillaged so that Athens can continue to pay back loans from the EU, the European Central Bank and the International Monetary Fund."

But, Athens hasn't been paying back loans from the EU...the EU has paid themselves back with new loans.  I know it may seem like a technicality, but I do not believe anyone actually believes Greece will pay these loans off.  However, the liquidation of "valuable assets" will be real.  The debt offering is just a front to give the fascists the time they need to transfer ownership.  Then, they will discuss debt forgiveness.

booboo's picture

"The debt offering is just a front to give the fascists the time they need to transfer ownership.  Then, they will discuss debt forgiveness."

This is all you need to know.

Good Night and God Bless

BarkingCat's picture

You got it. This is just a variation of what was done to the former Warsaw Pact countries when Soviet Union fell. Stipped of assets for single digit percentage of their actual worth.

itsallgreektome's picture

it is easy to utter the word "sheep" when it is not your neck (or your loved ones necks) on the line. Revolutions are slowly building up and set off when you least expect it.
And the revolts so far only managed to ressurect a gang of 1500 neonazis to a political party,represented in the Greek parliament. That kinda killed the whole notion.

PleasedToMeatYou's picture

"World Socialist Web Site", where they considere In Defense of Leon Trotsy "essential reading". 

...a sure source for solid news.  Bwaaaahahahahahahahahaha!

JustObserving's picture

You prefer Time, The Economist or Der Spiegel or the British Bullshitting Corporation?

Since the beginning of the week, the three most influential mass circulation newsmagazines of the United States, Britain, and Germany—Time, The Economist, and Der Spiegel—have published cover stories that combine wild accusations against Vladimir Putin with demands for a showdown with Russia.

The most striking and obvious characteristic of these cover stories is that they are virtually identical. The CIA has scripted them all. The stories employ the same insults and the same fabrications. They denounce Putin’s “web of lies.” The Russian president is portrayed as a “depraved” mass murderer.

PleasedToMeatYou's picture

"You prefer Time, The Economist or Der Spiegel or the British Bullshitting Corporation?

No, but if you're standing there covered in shit, pointing at others also covered in somebody else's shit doesn't clean you up any.

i_call_you_my_base's picture

When looking for facts, the messenger is irrelavent. It only matters if you're looking for commentary / analysis.

Aaaarghh's picture

thats a pile of shit. If all that is out there is lies, it matters not who delivers it, you still get lies. In order to get to the truth, you need to analyse many sources of information and use some critical thinking.

Tall Tom's picture

Many source of information is just a euphemism for many sources of lies.


To get to the truth one needs to look at that which IS NOT the lie.


A source which is a lie may contain some truth, I will agree.


But looking at many lies just serves to repeat the lie which becomes believable when one hears it often enough. That is how propaganda works after all.

Icelandicsaga...............................................'s picture

IMO Tsirpas was a manchurian candidate like Obama         Followi g the playbook


mojojojo's picture

“A society grows great when old men plant trees whose shade they know they shall never sit in.”

Dr. Venkman's picture

Hillary Clinton used that to close her BS speech yesterday. She of course uses it to justify continued theft of the people via taxation and quixotic projects. How are you using it?

indygo55's picture

"How are you using it?"

Maybe he's in the tree business.

Dr. Venkman's picture

I got a chuckle out of that quip. Thank you For that.

Everyone's got an angle. Even the arborist.

Wahooo's picture

Yeah, it's bullshit. Think about it - we're great because we plant shade trees? Fucking politicians.

BarkingCat's picture

Old and wise saying.

It means that planning and working with long term goals even though you yourself might not benefit from it.

It does not mean socialism or communism.

It can be applied to many aspect of life, and that includes capitalist enterprise.

Look beyond the next fiscal quarter. Build something that will stand the test of time.

It is a rare concept in today's instant gratification society.

goldsaver's picture


I am 50 years old. In developing my ranch I can not only consider my potential lifetime. Based on my parents and grandparents lifetime, I have about 35-45 years left. If I were to only consider my lifetime I would only make improvements and capital investments that would carry me through the next 35-45 years. Like a 401k, or an IRA. Or, since I prefer to live off grid, an RV with a solar array and means to produce annual crops with no thoughts on sustainability. That is short sighted. I have children and grandchildren therefore my scope must be 100 years (the expected life expectancy of my grand kids).

When you place it in that context, it makes sense to invest in capital improvements that will not only benefit me for the next 35-45 years but in systems that will last a century. It makes sense to expand the ranch to 50 acres vs investing in a 1 acre plot of land. It makes sense to spend more installing very deep wells that will last a century regardless of future weather cycles vs a well that will only work if the weather remains at the current cycle. It makes sense to plant fruit orchards and self replicating food forests vs. mono cash crops that are susceptible to pests and weather changes.

If more people invested in our kids and grand kids futures by building living systems vs wasting money keeping them in the matrix, the matrix could collapse with minimal discomfort. Instead we have grown dependent upon systems designed to maintain our servitude and dependency.

Nobody For President's picture

About 15 years ago, I planted a 100 redwoods on the east side of the ridge under taller tanoak shade trees. I'm gonna have me a redwood grove in about another 800 years!

(This is after planting about 6000 Douglasfirs on my 43 acres, plus a bunch on the neighbors 40, during my first 25 years on the place.) 

Here's another quote from Silvus (silviculture named after him, yep): "Men seldom plant trees until they grow wise."

mojojojo's picture

A great society is one where the present borrows wealth from the future. In essence, taxation without representation. Therefore, if I could vote in the US elections, I would vote Hillary.

mojojojo's picture

In a democracy, if one wishes to get elected, one needs to pander to a segment of society. Since the majority of people are not capable of identifying the fallacious rhetoric of their leaders, and legislation is largely enacted to suit the privileged and parasitical rent-seeking elites, then it is only important to pay lip service to your constituents. You and I don't pay for their elections, campaign contributions do. If the moneyed interests support both sides, then it doesn't matter who wins. This whole election thing is purely theatrical. Neither Bernie Sanders nor Rand Paul are going to pull the US out of the quicksand it is in.

Dr. Venkman's picture

I think I understand. We are in quicksand, which can be found in marshes, which are dominated by grasses and/or reeds as opposed to trees. If someone had planted trees for shade, there would be branches to help survive the quicksand, either by pulling oneself to terra firma or by using the branch to increase bouyancy until help can arrive. However, if there were trees, it would be a swamp and there would be no quicksand. But there would be alligators. Shit man. that's dark.

mojojojo's picture

The United States and Greece share many commonalities. In this instance, a highly contagious disease, commonly contracted through unprotected mental intercourse with ideologues such as Krugman. This particular disease is known as Keynesianism. The disease debilitates the host by corrupting its cerebral cortex and establishing a degenerative addiction. This affliction forces the host to in-debt itself through debt monetization and debt instrumentation. As the disease worsens, a borrowing and spending frenzy occurs in a futile effort which exacerbates the condition. In the terminal phase of the disease, the host attempts to achieve escape velocity by borrowing itself out of debt.