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| Version 18 | Version 19 |
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| Business live: Yanis Varoufakis defends secret plan B; Chinese stocks tumble - as it happened | Business live: Yanis Varoufakis defends secret plan B; Chinese stocks tumble - as it happened |
| (7 months later) | |
| 7.44pm BST | 7.44pm BST |
| 19:44 | 19:44 |
| And finally, here’s Helena Smith’s take on today’s developments: | And finally, here’s Helena Smith’s take on today’s developments: |
| Greece’s former finance minister, Yanis Varoufakis, has been thrust back in the spotlight as he vigorously defended plans to launch a parallel payment system in the event of the country being ejected from the euro. | Greece’s former finance minister, Yanis Varoufakis, has been thrust back in the spotlight as he vigorously defended plans to launch a parallel payment system in the event of the country being ejected from the euro. |
| Saying it would have been “remiss” of him not to have a “plan B” if negotiations with the country’s creditors had collapsed, the outspoken politician admitted that a small team under his control had devised a parallel payment system. The secret scheme would have eased the way to the return of the nation’s former currency, the drachma. | Saying it would have been “remiss” of him not to have a “plan B” if negotiations with the country’s creditors had collapsed, the outspoken politician admitted that a small team under his control had devised a parallel payment system. The secret scheme would have eased the way to the return of the nation’s former currency, the drachma. |
| “Greece’s ministry of finance would have been remiss had it made no attempt to draw up contingency plans,” he said in a statement. | “Greece’s ministry of finance would have been remiss had it made no attempt to draw up contingency plans,” he said in a statement. |
| But Varoufakis, who resigned this month to facilitate talks between Athens’ left-led government and its creditors, denied that the group had worked as a rogue element outside government policy or beyond the confines of the law...... | But Varoufakis, who resigned this month to facilitate talks between Athens’ left-led government and its creditors, denied that the group had worked as a rogue element outside government policy or beyond the confines of the law...... |
| And that’s a good time to stop for the night. Thanks, as ever, for reading and commenting. Goodnight! GW | And that’s a good time to stop for the night. Thanks, as ever, for reading and commenting. Goodnight! GW |
| 7.43pm BST | 7.43pm BST |
| 19:43 | 19:43 |
| The leader of Syriza’s far-left bloc, Panayotis Lafazanis, has given a defiant speech tonight: | The leader of Syriza’s far-left bloc, Panayotis Lafazanis, has given a defiant speech tonight: |
| SYRIZA's Lafazanis speaking at Left Platform event in Athens, in front of banner declaring "'No' was not defeated. We're continuing" #Greece | SYRIZA's Lafazanis speaking at Left Platform event in Athens, in front of banner declaring "'No' was not defeated. We're continuing" #Greece |
| Syriza dissenter Lafazanis: No vote in referendum will not be forgotten #Greece pic.twitter.com/4UIhLCpmel | Syriza dissenter Lafazanis: No vote in referendum will not be forgotten #Greece pic.twitter.com/4UIhLCpmel |
| 7.14pm BST | 7.14pm BST |
| 19:14 | 19:14 |
| Here’s our story about the big news of the morning - the biggest one-day rout on the Chinese stock market in eight years. | Here’s our story about the big news of the morning - the biggest one-day rout on the Chinese stock market in eight years. |
| 7.10pm BST | 7.10pm BST |
| 19:10 | 19:10 |
| It’s still worth listening to the whole Varoufakis tape. But if you’d rather read it, just take a trip to the FT for the transcript: | It’s still worth listening to the whole Varoufakis tape. But if you’d rather read it, just take a trip to the FT for the transcript: |
| In case anyone is still interested, I've transcribed the entire @OMFIF call w/@yanisvaroufakis and posted it here: http://t.co/VvVCHK3UAq | In case anyone is still interested, I've transcribed the entire @OMFIF call w/@yanisvaroufakis and posted it here: http://t.co/VvVCHK3UAq |
| 7.05pm BST | 7.05pm BST |
| 19:05 | 19:05 |
| #Euro area recovering but stronger growth needed to boost jobs. Read report (PDF) http://t.co/v1g1rRyo1j | #Euro area recovering but stronger growth needed to boost jobs. Read report (PDF) http://t.co/v1g1rRyo1j |
| 6.04pm BST | 6.04pm BST |
| 18:04 | 18:04 |
| IMF health check | IMF health check |
| In its latest economic check-up released today, the Fund has diagnosed the eurozone’s outlook as distinctly gloomy. Read the full story here … | In its latest economic check-up released today, the Fund has diagnosed the eurozone’s outlook as distinctly gloomy. Read the full story here … |
| 5.51pm BST | 5.51pm BST |
| 17:51 | 17:51 |
| Tsipras calls for Syriza conference | Tsipras calls for Syriza conference |
| Hello again. Alexis Tsipras has now made his appeal to party unity, as Helena flagged up earlier. | Hello again. Alexis Tsipras has now made his appeal to party unity, as Helena flagged up earlier. |
| And he did indeed call for a broad party conference to formulate strategy. | And he did indeed call for a broad party conference to formulate strategy. |
| Enikos has the details: | Enikos has the details: |
| “Our strategy should be clarified with calmness and maturity through the party procedures,” he told the party’s political committee. | “Our strategy should be clarified with calmness and maturity through the party procedures,” he told the party’s political committee. |
| “So we should plan for a conference as soon as possible, as envisaged by (the party’s) charter.” | “So we should plan for a conference as soon as possible, as envisaged by (the party’s) charter.” |
| This conference would allow Syriza to rally set a new agenda, and adjust to the reality of the bailout deal agreed this month. And possibly announce an election in November.... | This conference would allow Syriza to rally set a new agenda, and adjust to the reality of the bailout deal agreed this month. And possibly announce an election in November.... |
| Opinions varied on whether Tsipras pulled off the ‘effortlessly stylish’ look: | Opinions varied on whether Tsipras pulled off the ‘effortlessly stylish’ look: |
| Tsipras arrives at Syriza's central committee meeting today, proving he is every inch as cool as Yanis pic.twitter.com/PLvXdIUNHt | Tsipras arrives at Syriza's central committee meeting today, proving he is every inch as cool as Yanis pic.twitter.com/PLvXdIUNHt |
| I realise this isn't remotely important, but Tsipras has really bad sunglasses pic.twitter.com/tr2vvDwmeO | I realise this isn't remotely important, but Tsipras has really bad sunglasses pic.twitter.com/tr2vvDwmeO |
| Updated | Updated |
| at 5.55pm BST | at 5.55pm BST |
| 3.19pm BST | 3.19pm BST |
| 15:19 | 15:19 |
| Today’s selloff means the FTSE 100 has lost all its gains this year. | Today’s selloff means the FTSE 100 has lost all its gains this year. |
| The blue chip index ended 2014 at 6566 points, and rallied to a lifetime high of 7103 points in late April this year | The blue chip index ended 2014 at 6566 points, and rallied to a lifetime high of 7103 points in late April this year |
| But the Footsie has fallen over 8% since, pulled down by the Greek crisis, speculation of a US interest rate rise, fears that China’s economy is slowing, and the drop in commodities prices. | But the Footsie has fallen over 8% since, pulled down by the Greek crisis, speculation of a US interest rate rise, fears that China’s economy is slowing, and the drop in commodities prices. |
| Update: As that graph shows, this is the second time this year that the index has fallen below the break-even mark | Update: As that graph shows, this is the second time this year that the index has fallen below the break-even mark |
| Updated | Updated |
| at 6.06pm BST | at 6.06pm BST |
| 3.04pm BST | 3.04pm BST |
| 15:04 | 15:04 |
| Europe’s stock markets have continued to slide today, as China’s stock market rout overnight reverberates through global trading floor. | Europe’s stock markets have continued to slide today, as China’s stock market rout overnight reverberates through global trading floor. |
| European shares heading for biggest five-day drop of 2015 http://t.co/wKdOgCa7IR pic.twitter.com/K1UOYgVpWT | European shares heading for biggest five-day drop of 2015 http://t.co/wKdOgCa7IR pic.twitter.com/K1UOYgVpWT |
| 2.36pm BST | 2.36pm BST |
| 14:36 | 14:36 |
| I can’t quite believe this is true. But there are reports that Greece’s creditors are being rebadged as the Quadriga, to reflect the fact that the ESM is joining the Troika. | I can’t quite believe this is true. But there are reports that Greece’s creditors are being rebadged as the Quadriga, to reflect the fact that the ESM is joining the Troika. |
| In classical times, the quadriga was a four-horse chariot used for racing -- or even driven by the goddess Nike. | In classical times, the quadriga was a four-horse chariot used for racing -- or even driven by the goddess Nike. |
| You may have seen one in Berlin.... | You may have seen one in Berlin.... |
| Quadriga might turn out to be an imperfect name for the institutions. Because you know who else has a Quadriga? pic.twitter.com/8r4OuObj5g | Quadriga might turn out to be an imperfect name for the institutions. Because you know who else has a Quadriga? pic.twitter.com/8r4OuObj5g |
| I'm backing Quatro | I'm backing Quatro |
| 2.21pm BST | 2.21pm BST |
| 14:21 | 14:21 |
| Greece’s opposition parties were quick to criticise Varoufakis over his work on a parallel payment system, and are seeking answers. | Greece’s opposition parties were quick to criticise Varoufakis over his work on a parallel payment system, and are seeking answers. |
| The Financial Times has the details: | The Financial Times has the details: |
| The centre-right opposition New Democracy party demanded that the government “come up with convincing answers for the Greek people . . . to shed light on this dark narrative”. | The centre-right opposition New Democracy party demanded that the government “come up with convincing answers for the Greek people . . . to shed light on this dark narrative”. |
| To Potami, a small centre-left party, said the former finance minister’s plan was “reminiscent of a bad thriller”. | To Potami, a small centre-left party, said the former finance minister’s plan was “reminiscent of a bad thriller”. |
| Varoufakis plot sparks opposition fury http://t.co/aszubxvosq | Varoufakis plot sparks opposition fury http://t.co/aszubxvosq |
| 2.17pm BST | 2.17pm BST |
| 14:17 | 14:17 |
| Slovakia's finance minister savages Varoufakis's 'two-faced' behaviour | Slovakia's finance minister savages Varoufakis's 'two-faced' behaviour |
| Having endured endless eurozone meetings over the Greek crisis this year, Slovakia’s finance minister is unamused by today’s disclosures from Yanis Varoufakis: | Having endured endless eurozone meetings over the Greek crisis this year, Slovakia’s finance minister is unamused by today’s disclosures from Yanis Varoufakis: |
| Unveiled plans by #Greece ex-FinMin Varoufakis to return to drachma during ongoing talks with us show how unpredictable he was as a partner | Unveiled plans by #Greece ex-FinMin Varoufakis to return to drachma during ongoing talks with us show how unpredictable he was as a partner |
| We need to make sure that such two-faced 'games' will be avoided when debating&drafting the third bailout package for #Greece #ECB #eurozone | We need to make sure that such two-faced 'games' will be avoided when debating&drafting the third bailout package for #Greece #ECB #eurozone |
| Updated | Updated |
| at 2.18pm BST | at 2.18pm BST |
| 2.08pm BST | 2.08pm BST |
| 14:08 | 14:08 |
| And here’s the official statement from James Galbraith, the US economist who worked with Varoufakis on his continency plan: | And here’s the official statement from James Galbraith, the US economist who worked with Varoufakis on his continency plan: |
| I spent five months from early February through early July in close association with the Greek Finance Minister, Yanis Varoufakis, and was part of the Working Group that did contingency planning for potential attempts to asphyxiate the Greek government, including aggressive moves to force the country out of the euro. | I spent five months from early February through early July in close association with the Greek Finance Minister, Yanis Varoufakis, and was part of the Working Group that did contingency planning for potential attempts to asphyxiate the Greek government, including aggressive moves to force the country out of the euro. |
| Since a great deal of public confusion has now arisen over this effort, the following should be stated: | Since a great deal of public confusion has now arisen over this effort, the following should be stated: |
| Point 4 appears to refer to the revelation that Syriza’s Left Platform hatched a plan to return to the drachma, after last month’s Euro summit where the bailout plan was agreed. | Point 4 appears to refer to the revelation that Syriza’s Left Platform hatched a plan to return to the drachma, after last month’s Euro summit where the bailout plan was agreed. |
| 2.05pm BST | 2.05pm BST |
| 14:05 | 14:05 |
| Varoufakis issues statement defending contingency plan | Varoufakis issues statement defending contingency plan |
| Yanis Varoufakis has just released a statement defending his work creating a parallel payment system during his time as finance minister. | Yanis Varoufakis has just released a statement defending his work creating a parallel payment system during his time as finance minister. |
| The statement, from “the Office of Yanis Varoufakis”, insists that he was fully authorised to carry out the work. | The statement, from “the Office of Yanis Varoufakis”, insists that he was fully authorised to carry out the work. |
| It also criticises the media for their “far-fetched” articles, and denies the claim that he ever planned to hijack all taxpayers tax file numbers [which he does not actually say on the leaked Tapes]. | It also criticises the media for their “far-fetched” articles, and denies the claim that he ever planned to hijack all taxpayers tax file numbers [which he does not actually say on the leaked Tapes]. |
| Here’s the full statement: | Here’s the full statement: |
| During the Greek government’s negotiations with the Eurogroup, Minister Varoufakis oversaw a Working Group with a remit to prepare contingency plans against the creditors’ efforts to undermine the Greek government and in view of forces at work within the Eurozone to have Greece expelled from the euro. The Working Group was convened by the Minister, at the behest of the Prime Minister, and was coordinated by Professor James K. Galbraith [who has issued his own statement] | During the Greek government’s negotiations with the Eurogroup, Minister Varoufakis oversaw a Working Group with a remit to prepare contingency plans against the creditors’ efforts to undermine the Greek government and in view of forces at work within the Eurozone to have Greece expelled from the euro. The Working Group was convened by the Minister, at the behest of the Prime Minister, and was coordinated by Professor James K. Galbraith [who has issued his own statement] |
| It is worth nothing (he means noting) that, prior to Mr Varoufakis’ comfirmation of the existence of the said Working Group, the Minister was criticized widely for having neglected to make such contingency plans. The Bank of Greece, the ECB, treasuries of EU member-states, banks, international organisations etc. had all drawn up such plans since 2012. Greece’s Ministry of Finance would have been remiss had it made no attempt to draw up contingency plans. | It is worth nothing (he means noting) that, prior to Mr Varoufakis’ comfirmation of the existence of the said Working Group, the Minister was criticized widely for having neglected to make such contingency plans. The Bank of Greece, the ECB, treasuries of EU member-states, banks, international organisations etc. had all drawn up such plans since 2012. Greece’s Ministry of Finance would have been remiss had it made no attempt to draw up contingency plans. |
| Ever since Mr Varoufakis announced the existence of the Working Group, the media have indulged in far-fetched articles that damage the quality of public debate. The Ministry of Finance’s Working Group worked exclusively within the framework of government policy and its recommendations were always aimed at serving the public interest, at respecting the laws of the land, and at keeping the country in the Eurozone. | Ever since Mr Varoufakis announced the existence of the Working Group, the media have indulged in far-fetched articles that damage the quality of public debate. The Ministry of Finance’s Working Group worked exclusively within the framework of government policy and its recommendations were always aimed at serving the public interest, at respecting the laws of the land, and at keeping the country in the Eurozone. |
| Regarding the recent article by “Kathimerini” newspaper entitled “Plan B involving highjacking and hacking”, Kathimerini’s failure to contact Mr Varoufakis for comment and its reporter’s erroneous references to “highjacking tax file numbers of all taxpayers” sowed confusion and contributed to the media-induced disinformation. The article refers to the Ministry’s project as described by Minister Varoufakis in his 6th July farewell speech during the handover ceremony in the Ministry of Finance. In that speech Mr Varoufakis clearly stated: “The General Secretariat of Information Systems had begun investigating means by which Taxisnet (Nb. the Ministry’s Tax Web Interface) could become something more than it currently is, to become a payments system for third parties, a system that improves efficiency and minimises the arrears of the state to citizens and vice versa.” | Regarding the recent article by “Kathimerini” newspaper entitled “Plan B involving highjacking and hacking”, Kathimerini’s failure to contact Mr Varoufakis for comment and its reporter’s erroneous references to “highjacking tax file numbers of all taxpayers” sowed confusion and contributed to the media-induced disinformation. The article refers to the Ministry’s project as described by Minister Varoufakis in his 6th July farewell speech during the handover ceremony in the Ministry of Finance. In that speech Mr Varoufakis clearly stated: “The General Secretariat of Information Systems had begun investigating means by which Taxisnet (Nb. the Ministry’s Tax Web Interface) could become something more than it currently is, to become a payments system for third parties, a system that improves efficiency and minimises the arrears of the state to citizens and vice versa.” |
| That project was not part of the Working Group’s remit, was presented in full by Minister Varoufakis to Cabinet, and should, in Minister Varoufakis’ view, be implemented independently of the negotiations with Greece’s creditors, as it will contribute considerable efficiency gains in transactions between the state and taxpayers as well as between taxpayers. | That project was not part of the Working Group’s remit, was presented in full by Minister Varoufakis to Cabinet, and should, in Minister Varoufakis’ view, be implemented independently of the negotiations with Greece’s creditors, as it will contribute considerable efficiency gains in transactions between the state and taxpayers as well as between taxpayers. |
| In conclusion, during the five months of negotiations that gripped Europe and changed the debate throughout the Continent, the Ministry of Finance did everything possible to serve the public interest against many odds. The current media campaign to besmirch these efforts will fail to dent the legacy of a crucial five month struggle for democracy and common sense. | In conclusion, during the five months of negotiations that gripped Europe and changed the debate throughout the Continent, the Ministry of Finance did everything possible to serve the public interest against many odds. The current media campaign to besmirch these efforts will fail to dent the legacy of a crucial five month struggle for democracy and common sense. |
| Statement by Yanis Varoufakis on the FinMin’s Plan B Working Group & the parallel payment system http://t.co/9JTWNyq8JK | Statement by Yanis Varoufakis on the FinMin’s Plan B Working Group & the parallel payment system http://t.co/9JTWNyq8JK |
| Updated | Updated |
| at 2.48pm BST | at 2.48pm BST |
| 1.52pm BST | 1.52pm BST |
| 13:52 | 13:52 |
| Another point about the Varoufakis Tapes -- this call took place under Chatham House rules, which means that the details can’t be reported by the participants. | Another point about the Varoufakis Tapes -- this call took place under Chatham House rules, which means that the details can’t be reported by the participants. |
| However, Greek newspaper Kathimerini published large details of the transcript yesterday, prompting OMFIF to released the full recording today. It’s not clear how Kathimerini got hold of the tapes. | However, Greek newspaper Kathimerini published large details of the transcript yesterday, prompting OMFIF to released the full recording today. It’s not clear how Kathimerini got hold of the tapes. |
| 1.45pm BST | 1.45pm BST |
| 13:45 | 13:45 |