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Varoufakis after Eurogroup: Deal pending, liquidity an urgent problem

On possibility of a referendum: 'At the moment it’s not on the radar as far as we are concerned'

Newsroom May 11 09:48

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Greek Finance Minister Yanis Varoufakis showed spunk and smiled on Monday after the Eurogroup meeting in Brussels, a dramatically different result from the previous informal session in Riga, where he stated that he “welcomed hate”.

Unburdened by other Greek ministers at his side, he noted that a deal is possible within a couple weeks.

In a press briefing afterwards, Varoufakis downplayed the possibility of a referendum to approve a future deal with eurozone partners, warning that euro-less state coffers is a greater and “terribly more urgent” problem.

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“A referendum is always available … in order to elicit the support of the people … It’s a tool available to the government. At the moment it’s not on the radar as far as we are concerned.”

In a portent of progress in talks so far, he said both sides – Athens and its creditors – were closer on VAT rates, privatizations and non-performing loans, saying the “split” with creditors has narroed. He didn’t say as much on labour liberalization, which creditors want and the leftist government doesn’t want to give.

In other highlights, he said the Eurogroup meeting was conducted in a ‘thoroughly positive’ atmosphere and that the ECB should reinstate its waiver on Greek banks’ collateral – in order to allow them to buy more short-term Greek debt.

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