Varoufakis claims Greek govt, creditors have agreed on numbers

Yanis Varoufakis said that Greece and creditors are now using the same models to calculate figures, but have not agreed on the solutions

Finance Minister Yanis Varoufakis on Friday continued the government’s “Operation Optimism” by noting that “we have not reached an agreement but we have agreed on the model (to use for our calculations) so that we can talk about the same figures” in a radio interview with Vima FM.

“For example, when we speak about VAT rates we need to be talking about the same results. Since yesterday we have been talking about the same models,” he said.

“Initially we submitted a proposal with two rates at 6.5% and 15% as well as an increase when cash is used,” he said. “The institutions (representatives of the European Commission, European Central Bank and International Monetary Fund) refuted the proposal with their own 13%-23% rate that cannot be discussed.” He pointed to a final proposal that was reached with three rates, however would not disclose further details ahead of the statement to be made by the government’s spokesperson. “We share our thoughts, but the Press speaks of decisions being made and when the numbers change in a negotiation they talk about (the government performing) somersaults,” he complained, adding that the Greek press has caused him “grief”.

He did reveal, however, that the latest proposal will include a VAT reduction in household items. “Our proposal, according to the joint model that will yield 900 million euros in VAT without revenue from improved financial activity is one that (the institutions) will not accept,” he said.

The Finance Minister said that taxing bank transactions is “unacceptable” adding that the proposal was revoked following the Finance Ministry’s opposition.

During the same interview he said that every time a proposal is brought to the table, the institutions call for additional parameters. He said that 2015 is difficult year for the Greek economy due to the six-month negotiation, hence emergency measures are required. “We will not agree to permanent recessionary measures,” he said.

Varoufakis said that the single property tax (ENFIA) is an unacceptable tax, “that I can’t support even for a second” adding that there has been no decision made concerning its continuation, however, it is “part of the negotiation” process. “Once negotiations are over, we will see what equivalent measures can be taken to abolish ENFIA,” he said.

The government, nevertheless, has said it will keep the tax, at least for 2015.

Asked if he will continue to be Greece’s finance minister following the negotiations, he said that he is not one who would “drop the shield”.