Stournaras Says Varoufakis’ Strategy Cost Greece 86 Billion Euros

ATHENS – Bank of Greece Governor Yannis Stournaras said the defiant stance former Finance Minister Yanis Varourakis took with Greece’s creditors forced a third bailout costing Greece 86 billion euros ($96.53 billion).

Stournaras, who served a previous Administration ruled by the New Democracy Conservatives and supported austerity took a hard shot at Varoufakis, who was forced out by Prime Minister and Radical Left SYRIZA leader Alexis Tsipras last year for being so combative that Eurozone finance chiefs wouldn’t deal with him.

Varoufakis, a self-proclaimed games expert and economic blogger, had dug in his heels against austerity but became persona non grata when Tsipras reneged on his pledges to fight more pay cuts, tax hikes, slashed pensions, worker firings and privatizations.

Stournaras, who left a prominent think tank to become finance chief before moving on to the Bank of Greece, said Varoufakis’ strategy was essentially to have none.

Speaking at a conference organized by the Hellenic Observatory of the London School of Economics, Stournaras spoke up after the former General Secretary of the Finance Ministry, Nikos Theocharakis, that Greece had conducted brave negotiations.

“[Theocharakis] failed though to admit that the ‘brave’ negotiations that he and Yanis Varoufakis led, which led to the change of the name of the Troika to ‘institutions’ and removed the troika Trom the ministries to the Hilton, also had a cost,” he said, Kathimerini reported.

“The cost of course was 86 billion euros: That was the third memorandum and the capital controls that have been imposed after 45 billion euros of deposit outflows,” he said, deriding Theocharakis’s claims as “partisan.”