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> Politics

Yanis: We’re prepared for compromises, ‘we are not prepared to be compromised’

He cited 3 pre-conditions for a deal to unblock up to 7 bln euros in bailout funds; 'We'll assume the political cost of a compromise'

Newsroom April 9 11:12

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“… We are prepared to make all sorts of compromises, we are not prepared to be compromised,” was Greek FinMin Yanis Varoufakis’ parting shot on Thursday in a Bloomberg TV interview from Paris.

The globe-trotting Yanis earlier spoke to the Institute for New Economic Thinking, where he expressed confidence that an agreement to unblock much-needed cash for the leftist government in Athens will achieved at, or during the Eurogroup meeting on April 24.

Here’s what the self-described “erratic Marxist” described as three conditions for the do-or-die deal:

— Prioritize deep reforms that will deal with the malignancy of the Greek social economy, of the Greek state.
— Deal with the ill effects of a five-year catastrophic recession.
— A resolution of long term, sustainable fiscal plan that involves three elements.

“One has to do with appropriate primary surpluses, so we need primary surplus. We never are going to fall back into primary deficits again, but at the same time this should not be excessive because it will crush the private sector.

“We need a sensible policy for crowding in private investment and that must involve a package of public investment from some kind of European authority or institution that will help with the process of crowding in private investment … and a rationalization on the different slices of the Greek debt without any haircuts for anyone but in a way that maximizes the amount of value that our creditors will get back from the Greek state.”

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He ended the interview by saying:

“We wouldn’t be fit for the purpose if we were not prepared to take the political costs which are necessary to stabilize Greece and lead it to growth, but let me be very precise on this, we are prepared to make all sorts of compromises, we are not prepared to be compromised.”

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