Reform deal would make Greece attractive to investors

Varoufakis also said he ‘trusted’ that a deal would be struck between Greece and its lenders over the release of bailout funds in the coming days or weeks.

During a meeting at the European Business Summit, Varoufakis said that three basic obstacles needed to be overcome to reach a lasting solution for Greece: fiscal adjustment, the debt and a mutually acceptable reform agenda.

With regards to the reform agenda Varoufakis said that it must be such that it, ‘does not turn the Greek population against us,’ and spoke of the need to reform the Greek labour marketplace.

Varoufakis also expressed optimism that given an agreement over the reform package, ‘Greece will become a fantastic country for investments.’

According to the Finance Minister, Greece needs a serious front-loaded adjustment of the debt and that state assets must be mobilized through a privatization program but in a way that the ‘government understands and is not a fire-sale’. A serious reform of VAT is also necessary according to Varoufakis.

The Finance Minister also stressed the need to improve the efficiency of the justice system which currently hinders the government’s capacity to reform.

The three ‘dangerous myths’ about Greece

The minister spoke of a ‘triptych’ of dangerous myths about Greece:

1. That a Grexit would be good for Europe and Greece

2. That Greece didn’t do anything to improve its situation in the previous years

3. And third that the government has not negotiated properly.

A Greek exit from the Eurozone would ultimately lead to the unraveling of the Eurozone, Varoufakis maintained.

When asked about his position in the government, Varoufakis said that ‘the negotiations cannot be the work of one,’ and that relations within the administration were harmonious.

source: Reuters