In an article on the Greek economic crisis and the costs for Europe and Greece so far from the financial turmoil, Reuters quotes a senior EU official as saying that: “Varoufakis was the most expensive finance minister in history”. As the piece says this feeling by the EU official simply reflects the bitterness many feel towards the Marxist economist.
The article explains the bleak situation in the Greek economy citing the down spiralling of the Athens Stock Exchange as an example resulting from the mismanagement of the situation by Varoufakis and the Greek government over the last few months.
The ATHEX capitalization was 64 bln euros in December 2014 and had lost a quarter of its value by June 25, 2015 jut before capital controls were imposed. Greek banks have suffered considerably, as last year they attracted 8 bln euros in capital whereas they now need 25 bln euros for recapitalization. The same EU official said that that the Eurozone has given Greece aid amounting to half a trillion Euros over the past 6 tears. “-Transferred to an economy of 180 bln GDP-that is an enormous transfer of wealth” says the official echoing the frustrations of EU partners towards Greece.
The most important factor in the wider scheme is the uncertainty that Greece’s status creates across Europe, as well the possibility that it might have to write off some of its debt.
