In These New Times

Varoufakis’ thinking is perfectly in tune with that of Michel Barnier, the European commissioner who devised the EU’s banking union plan. The three main points of Varoufakis’ plan correspond to those of the banking union which will come into full force by the end of 2015, Those are, firstly, a “bail in ” of the banks instead a “bail out”, whereby creditors and shareholders of the banks take the rap rather than taxpayers. This process to be overseen at pan-European level rather than at the level of the nation states. Secondly, mutualisation i.e. Eurobonds and , thirdly, reconstruction of real economy through an pan-European investment programme. It is the opposition of the City of London to this “dirigiste” project drawn up by the avowed Gaullist, Barnier, which accounts for the fact that no one hears anything of it. What Greece is doing now should help bring it centre stage and shift the balance of power in Europe away from atlanticist-style finance capital towards precisely such a centralized and dirigiste model.

Naked Capitalism

26th June, 2012

Yves here. Yanis just posted an interview with ABC (Australia’s BBC) which describes how Greece cannot be salvaged. Its fate will be determined at the eurozone level, and its possible outcomes range from bad to awful. You can watch the conversation here. Transcript below:

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