Varoufakis: “Rome will collapse without Eurobond”

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Varoufakis: Rome will collapse without Eurobond

” Someone will say that Europe is finally moving fast. But the direction is wrong. ” So the former Greek finance minister Yanis Varoufakis commented in an interview with La Stampa on the aid plan launched yesterday in Brussels to deal with the crisis caused by the coronavirus emergency. ” The ECB must issue thirty-year Eurobonds – he argues – This is the only way to save Italy. Otherwise, Brussels will be ready to ask for austerity policies in a year, as it did with us in Greece. ”

The leader of the pan-European progressive movement DiEM25 says that in the face of “a crossroads”, where there was “financial and political integration on the one hand, and the collapse of the EU on the other”, “we took the wrong way”. Regarding the 170 billion allocated, according to the former Greek minister ” it would be wrong to celebrate only for the amount of resources allocated. You need quality. ” That is, for Varoufakis this figure ” will affect about 1% of the Italian GDP for the next three years: an insignificant value. Many billions, then, being tied to investments in sectors such as new technologies, will be diverted more to France and Germany than to Italy. Finally, the loans will have to be repaid and, with a public debt that will rise to 200% of GDP, it will be difficult to do it ”.

As for the so-called “junk bonds” of which the ECB spoke to help countries in crisis, Varoufakis wonders “how long can he continue to do so?” The only solution ” is that of the thirty-year Eurobonds issued by the European Central Bank under the protection of the common treasury ministry. The second solution is an investment plan conveyed by the EIB, a green Green Deal of 500 billion a year. A third idea is helicopter money, money for citizens as Trump did. Only in this way will we face the costs of the economic crisis without slipping into austerity ”.

And he concludes by comparing Italy to Japan. ” It is a state similar to yours in some ways: an industrial country, devoted to exports with an elderly population. But with its central bank. ”

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