Clinton Emails Give Away Schauble Plans in 2012 - Exclusive Commentary by Varoufakis


Last week Wikileaks uploaded to its database a series of Hillary Clinton’s declassified emails from the time when she was Secretary of State. The following document is especially interesting because it presents Schauble’s plans in case SYRIZA took over power back in 2012. Read Hillary Clinton’s messages and the exclusive commentary by Greek ex minister of Finance, Yanis Varoufakis.

As it is clearly illustrated in the following email, the German government was concerned by the possibility of SYRIZA coming to power in 2012. According to the information sent by Hillary Clinton’s office, Schauble thought there were only two ways to face the European debt crisis “none of which was pleasant to Germany and the rest of the member states”. The first plan was based on a proposal made in 2011 by German economic experts, “The Five Wise Men”, regarding a European Redemption Pact. The Pact would include a fund of 2.3 trillion euros for debt relief and preventive protection of Eurozone member states affected by the debt crisis. (Details of the plan have been released by global media here http://www.thepressproject.gr/build12/elink.gif  and herehttp://www.thepressproject.gr/build12/elink.gif  ) Other than that, issuing Eurobonds could also be a solution but Schauble did not approve any of these ideas because of the turbulences they would cause to the German political system. 

Although the German minister of Finance stated in private that “if the Greek people vote for a government led by the anti-austerity Syriza party, they must bear the consequences of their actions”, he also believed that a Grexit would be a highly negative event, since he considered it would have a significant impact on Spain, Portugal and Ireland. In response to the possibility of Greece leaving the Eurozone, Schauble was elaborating the idea of the creation of a two tiered Eurozone.

In the email, it is written that “in any event, Schauble continues to believe that a complete collapse of the currency union is unacceptable for Germany, as the newly reconstituted Deutsche Mark would be considerably more valuable than the Euro; seriously damaging Germany’s export driven economy” and also in other part “a Greek withdrawal from the currency union may set the stage for Portugal, Spain and Ireland to follow”.

The declassified email is available below. Also, the Greek ex-minister of Finance, Yanis Varoufakis is commenting on the information provided by the document right after it.
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