Yanis Varoufakis, former finance minister, Greece

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0:00:02 > 0:00:09Now on BBC News, it's time for Hardtalk.

0:00:09 > 0:00:09Welcome to HARDtalk.

0:00:09 > 0:00:11I'm Stephen Sackur.

0:00:11 > 0:00:13Frustration and anger are the common currency

0:00:13 > 0:00:15of today's European politics.

0:00:15 > 0:00:17On the right, there's a resurgent nationalism, fuelled

0:00:17 > 0:00:20by fears of immigration, and, on the left, well, on the left, the

0:00:20 > 0:00:31enemy is austerity and an economic system seen as serving the elite.

0:00:31 > 0:00:34My guest today is one of the most powerful voices

0:00:34 > 0:00:36in Europe's radical left, Yanis Varoufakis, the motorbike

0:00:36 > 0:00:38riding, former Greek Finance Minister who confronted the powers

0:00:38 > 0:00:41that be during the darkest days of Greece's debt crisis and lost...

0:00:41 > 0:00:42Or did he?

0:00:42 > 0:00:42Yanis Varoufakis, welcome to HARDtalk.

0:01:16 > 0:01:17Yanis Varoufakis, welcome to HARDtalk.

0:01:17 > 0:01:20It's great to be here.

0:01:20 > 0:01:23When you reflect on your own life and Greece's turbulent

0:01:23 > 0:01:26life over the last, say, 15 months or so, do you reflect with a deep

0:01:26 > 0:01:31sense of disappointment, failure?

0:01:31 > 0:01:31Oh, no.

0:01:31 > 0:01:33Nothing could be further from the truth.

0:01:33 > 0:01:36Life is a constant battle and waging it is where

0:01:36 > 0:01:37the satisfaction comes out of.

0:01:37 > 0:01:41In the end, we are all dead - it does not mean we do not wake up

0:01:41 > 0:01:48in the morning full of zest.

0:01:48 > 0:01:50Well, that's a very interesting way of putting it.

0:01:50 > 0:01:54Life is a constant battle but nobody wants to spend life losing battles

0:01:54 > 0:01:55and you fought and you lost?

0:01:55 > 0:01:56Not necessarily.

0:01:56 > 0:02:00Losing the good battle, waging the fight that has to be

0:02:00 > 0:02:03fought, if you feel that it is a good cause, is a source

0:02:03 > 0:02:10of great satisfaction and pride.

0:02:10 > 0:02:14Even when you look at Greece today, you a country that is still tied to

0:02:14 > 0:02:16the so-called Troika bailout package, desperately trying to

0:02:16 > 0:02:18negotiate the latest instalment of the third bailout, you see former

0:02:18 > 0:02:20comrades like Alexis Tsipras, the prime minister,

0:02:20 > 0:02:23now managing a process which you have described in the past

0:02:23 > 0:02:37as little more than terrorism inflicted upon your country?

0:02:37 > 0:02:40Well, there is no doubt we have an extremely sad affair

0:02:40 > 0:02:41in the case of Greece.

0:02:41 > 0:02:44Greece went bankrupt in 2010 and since then the powers that be,

0:02:44 > 0:02:54including in Athens but everywhere in Europe...

0:02:54 > 0:02:56Including your former comrades, the party that you served for -

0:02:56 > 0:02:57what was it?

0:02:57 > 0:02:58- 6-7 months...

0:02:58 > 0:03:01Including every government that has served since 2010, the IMF...

0:03:01 > 0:03:03they have all been, in the end serving a gross denial

0:03:03 > 0:03:06by extending the crisis into the future, pretending they have solved

0:03:06 > 0:03:09it through, you know, just adding unsustainable debt on unpayable debt

0:03:09 > 0:03:10and this sounds like a historical incident of some interest but,

0:03:11 > 0:03:15in reality - that is why it is extremely disappointing - because we

0:03:15 > 0:03:18are talking about real people, here, we are talking about kids that faint

0:03:18 > 0:03:31at school from malnutrition, we are talking about a lost generation.

0:03:31 > 0:03:34But I suppose what interests me most is that it was supposed to

0:03:34 > 0:03:37be different after 2015.

0:03:37 > 0:03:41You know, you talk about the crisis going back to 2010, and you're quite

0:03:41 > 0:03:44right to do so, the crisis has been deep and long, but something

0:03:44 > 0:03:47happened in 2015 - the Greek people voted for a radical left alternative

0:03:47 > 0:03:58- the Syriza party.

0:03:58 > 0:04:02You, having said that you would "never, never, never" - and that'sa

0:04:02 > 0:04:05direct quote - "serve in politics," answered the call from Alexis

0:04:05 > 0:04:07Tsipras, and joined the Syriza-led government in an effort to

0:04:07 > 0:04:10fundamentally change the deal in Greece and Greece's deal with

0:04:10 > 0:04:10the European Union.

0:04:10 > 0:04:11Precisely.

0:04:11 > 0:04:13We stood on a platform of speaking through to power -

0:04:13 > 0:04:16and power of course is the Troika lenders, of creditors of Greece.

0:04:16 > 0:04:20Our pact was based - the pact of those who served in the

0:04:20 > 0:04:23first government that was elected in January, 2015 - was very simple.

0:04:23 > 0:04:26We are going to go to Brussels, and we're going to go to Washington,

0:04:26 > 0:04:30and we're going to go to Frankfurt and say to them, the program that

0:04:30 > 0:04:35you have been implementing in Greece has been a spectacular failure, the

0:04:35 > 0:04:39greatest macro-economic disaster in the history of the IMF,

0:04:39 > 0:04:42for instance - a third of our income dissipated, unemployment

0:04:42 > 0:04:45jumped up by 20% - imagine that, one in two families do not have

0:04:45 > 0:04:50a waged person in their midst.

0:04:50 > 0:04:54And we are going to say to them, we need to reboot.

0:04:54 > 0:04:57We're no longer going to sign on the dotted line of loan

0:04:57 > 0:04:59agreements without having secured that these new loan agreement is

0:04:59 > 0:05:09going to be sustainable.

0:05:09 > 0:05:12And we were, I thought, absolutely united in that and we were not going

0:05:12 > 0:05:16to back away, but in the end, a wedge was pushed between us.

0:05:16 > 0:05:23We were divided by the end, and once you get divided, you fall.

0:05:23 > 0:05:23Yeah, you fell.

0:05:23 > 0:05:26I mean, I look back at some of the things you said

0:05:26 > 0:05:28at the time you took the job.

0:05:28 > 0:05:30Having said you wouldn't do politics, you said, well,

0:05:30 > 0:05:33I can't resist this call, it's too important, my country's at stake.

0:05:33 > 0:05:36You said that we are going to do things differently -

0:05:36 > 0:05:39"we are going to destroy the country's oligarch who viciously

0:05:39 > 0:05:41sucks the energy and the economic power from everybody else."

0:05:41 > 0:05:45Your message was we are going to be truly radical to change Greece

0:05:45 > 0:05:45for ever.

0:05:45 > 0:05:45Why?

0:05:45 > 0:05:57(CROSSTALK).

0:05:57 > 0:05:57Not necessarily...

0:05:57 > 0:06:00I am not accusing left or right, at the moment,

0:06:00 > 0:06:01I'm just saying you refused...

0:06:01 > 0:06:04The crisis was so deep that left, right, commonsense could prevail.

0:06:04 > 0:06:07We needed to do three things - first, we needed to restructure

0:06:07 > 0:06:08and negotiate an unsustainable debt because,

0:06:08 > 0:06:10if you are bankrupt, that's it.

0:06:10 > 0:06:12There is no life beyond that.

0:06:12 > 0:06:15It's like being in the shadow of Mephistopheles all the time.

0:06:15 > 0:06:18Secondly, we would have to have credible fiscal targets so that we

0:06:18 > 0:06:21would never fall back into deficit position but, at the same time not

0:06:21 > 0:06:24have huge surplus targets that are unbelievable and therefore deeply

0:06:24 > 0:06:33further your credibility stock.

0:06:33 > 0:06:34And thirdly, attack the oligarchy, attack corruption,

0:06:35 > 0:06:35reform Greece deeply.

0:06:35 > 0:06:40These were the three things we needed to do.

0:06:40 > 0:06:43But there is arrogance, a hubris there, because the assumption you're

0:06:43 > 0:06:46making is it was within your power and remit to decide how

0:06:46 > 0:06:47to prioritise and what to do?

0:06:47 > 0:06:49But, of course, Greece was essentially bust.

0:06:49 > 0:06:53It was totally reliant on the money coming from outsiders and

0:06:53 > 0:06:56therefore outsiders had - clearly had - the right to decide how Greece

0:06:56 > 0:07:00should get itself out of this mess?

0:07:00 > 0:07:01Well, I think you are overstating it.

0:07:01 > 0:07:04Since when does debt mean that you have lost formally

0:07:04 > 0:07:12and fully your national sovereignty and foreigners will decide

0:07:12 > 0:07:19everything about your country...?

0:07:19 > 0:07:21Well, I am not saying everything.

0:07:21 > 0:07:23Think about any arrangement which involves a loan and a debt -

0:07:23 > 0:07:26there is a choice to be made on both sides.

0:07:26 > 0:07:29You only loan the money if you are sure and have promises...

0:07:29 > 0:07:31Ah-ha.

0:07:31 > 0:07:33About how that money is going to be used.

0:07:33 > 0:07:36So why did they land this money to a bankrupt state?

0:07:36 > 0:07:382010 where the largest loan in absolute terms

0:07:38 > 0:07:40in human history given to the most bankrupt European state,

0:07:40 > 0:07:43you know, it takes an irresponsible lender and an irresponsible borrower

0:07:43 > 0:07:46to forge this kind of pact.

0:07:46 > 0:07:53(CROSSTALK).

0:07:53 > 0:07:55Indeed but the power and the cards lie...

0:07:55 > 0:07:56But to answer your question...

0:07:56 > 0:07:58Going forward the real power lies with the lender

0:07:58 > 0:08:02not with the borrower because the borrower is going to go bust...

0:08:02 > 0:08:02Not exactly.

0:08:02 > 0:08:04If you owe 320 billion euros, you have some power.

0:08:04 > 0:08:05Yeah?

0:08:05 > 0:08:08If you owe ?3,000 to the bank then you have no power.

0:08:08 > 0:08:10But if you owe 300 billion, and you are part of

0:08:10 > 0:08:13an interconnected financial system, you are not completely devoid

0:08:13 > 0:08:18of power but that is not the issue.

0:08:18 > 0:08:20Let's set aside for the moment the question of bargaining power.

0:08:20 > 0:08:23When I went to Europe group and to meet Dr Schauble...

0:08:23 > 0:08:25I want to talk a lot about that...

0:08:25 > 0:08:27I am referring to what you just said.

0:08:27 > 0:08:30What I took with me, in my suitcase, was a willingness to sit

0:08:30 > 0:08:34down with them, not to dictate to them what should happen in Greece

0:08:34 > 0:08:38but sit down with them and work out a manageable fiscal

0:08:38 > 0:08:42and reform consolidation programme.

0:08:42 > 0:08:46The trouble was, they were not interested.

0:08:46 > 0:08:49This is the very first time in history that creditors did not

0:08:49 > 0:08:50want their money back.

0:08:50 > 0:08:51Hang on a minute.

0:08:51 > 0:08:54You talk about going to the euro group,

0:08:54 > 0:08:58and sitting there with Schauble and all the others - you took a style

0:08:58 > 0:09:01with you, a style that was designed to antagonise, send a message...

0:09:01 > 0:09:03What, I do not wear a tie?

0:09:03 > 0:09:06Of course, you wore your leather jacket, we all know that...

0:09:06 > 0:09:08No, I did not wear my leather jacket (CROSSTALK).

0:09:08 > 0:09:10I can assure you.

0:09:10 > 0:09:14It was not about what you wore, whether you had atie on, whether you

0:09:14 > 0:09:18came on your motorbike - it wasn't about any of that - it was about

0:09:18 > 0:09:22the inflammatory language, accusing them of fiscal waterboarding...

0:09:22 > 0:09:23There was no inflammatory language.

0:09:23 > 0:09:24You called them terrorists!

0:09:24 > 0:09:26No, no, no.

0:09:26 > 0:09:29Get your chronology right.

0:09:29 > 0:09:29I used...

0:09:29 > 0:09:32Firstly I never caught anyone a terrorist.

0:09:32 > 0:09:39What I said was, in the first week of July, after our banks were closed

0:09:39 > 0:09:40down by our central bank, why?

0:09:40 > 0:09:42Was there a problem with the banks?

0:09:42 > 0:09:44No.

0:09:44 > 0:09:48The central bank of Europe - the ECB - had proclaimed our banks to be

0:09:48 > 0:09:51solvent and why did they close them?

0:09:51 > 0:09:53In order to force us, the elected government,

0:09:53 > 0:10:02to accept massive pension cuts, massive austerity cuts.

0:10:02 > 0:10:03Yeah?

0:10:03 > 0:10:05Now, what is the spread of fear in order

0:10:05 > 0:10:06to attain political objectives?

0:10:06 > 0:10:07It is terrorism.

0:10:07 > 0:10:10And so, by that stage...

0:10:10 > 0:10:17Fiscal waterboarding as well, that is torture.

0:10:17 > 0:10:20These are people you say, "I approach with an open mind, trying

0:10:20 > 0:10:23collectively to find a way out of this crisis that would help the

0:10:24 > 0:10:25Greek economy and the Greek people."

0:10:25 > 0:10:27You say that and then I refer back to every

0:10:27 > 0:10:29attitude you took into the room.

0:10:29 > 0:10:32You made a point of being the antipolitics politician but the

0:10:32 > 0:10:34way you did it just does not work.

0:10:34 > 0:10:37Stephen, Stephen, when a new government is elected to

0:10:37 > 0:10:45confront creditors and to say to them that in your

0:10:45 > 0:10:47interest, too, and in the interest of our long-suffering nation

0:10:47 > 0:10:50in a great depression, we have to sit down and find common ground.

0:10:50 > 0:10:53At that moment, you have to set aside all this brimstone

0:10:53 > 0:10:58and noise and get down to work.

0:10:58 > 0:11:01The fact that for five years, all previous governments were being

0:11:01 > 0:11:06fiscally waterboarded is indisputable.

0:11:06 > 0:11:08Think of what has been happening since today.

0:11:08 > 0:11:11It is happening as we speak.

0:11:11 > 0:11:15You can continue to use that language if you like but I then

0:11:15 > 0:11:18reflect upon Christine Lagarde, at the height of the crisis, in June,

0:11:18 > 0:11:212015, coming out of a meeting with you and saying, with just total

0:11:21 > 0:11:25frustration, "it would be nice if we had some adults in the room."

0:11:25 > 0:11:29Stephen, she had not come out of a meeting with me when she said that.

0:11:29 > 0:11:33Who do you think she was talking about?

0:11:33 > 0:11:34Well, I'm not going to divulge this.

0:11:34 > 0:11:37It is not for me, you have to ask her.

0:11:37 > 0:11:46But, look, when I first met Christine Lagarde -

0:11:46 > 0:11:49since you're refering to Christine - we had conversation

0:11:49 > 0:11:52one-hour long conversation and we actually agreed on all the basic

0:11:52 > 0:11:54failures of the previous programme.

0:11:54 > 0:11:57Indeed, with Paul Thompson, who is the European chief

0:11:57 > 0:12:00of the International Monetary Fund, a very close associate of Christine

0:12:00 > 0:12:02Lagarde, we had agreed that the previous programmes had failed

0:12:02 > 0:12:10because there was no serious debt restruction involved,

0:12:10 > 0:12:13that the way of managing previous Greek governments by the Troika was

0:12:13 > 0:12:15effectively the strategy of fiscal waterboarding, which is what?

0:12:15 > 0:12:19You bring the subject to the point of no return

0:12:19 > 0:12:22and then you let the subject have a gulp of air - or liquidity, in the

0:12:22 > 0:12:30case of Greece - and then you repeat and you repeat and you repeat.

0:12:30 > 0:12:37This has been the pattern since May, 2010, and the result is the loss of

0:12:37 > 0:12:41one third of income and an ability to repay our debts to our creditors.

0:12:41 > 0:12:44The point is, and we come back to the opening of

0:12:44 > 0:12:47this conversation about senses pf failure - the point is that you, in

0:12:47 > 0:12:50the end, were thrown overboard by your former colleague, and the guy

0:12:50 > 0:12:51who hired you, Alexis Tsipras.

0:12:51 > 0:12:52No, this is not what happened...

0:12:52 > 0:12:54This is not what happened.

0:12:54 > 0:12:58It is what happened.

0:12:58 > 0:12:59No, it's not.

0:12:59 > 0:13:02Essentially, he said I'm going to let you go because the euro group

0:13:02 > 0:13:03cannot work with you anymore.

0:13:03 > 0:13:04That's not what happened.

0:13:04 > 0:13:07Do you want me to tell you what happened?

0:13:07 > 0:13:08You tell me what happened.

0:13:08 > 0:13:11From the end of April onwards, Alexis Tsipras and I started

0:13:11 > 0:13:13diverging in our views of what the right strategy should be.

0:13:13 > 0:13:18He was making compromises which, as far as I was concerned, were lethal,

0:13:18 > 0:13:23in the sense that they were...

0:13:23 > 0:13:29he was accepting for instant fiscal targets impossible to achieve.

0:13:29 > 0:13:32My view was, the moment you start doing that, you lose credibility and

0:13:32 > 0:13:35then at some point you're going to have to surrender and capitulate.

0:13:36 > 0:13:39That happened.

0:13:39 > 0:13:41Let me tell you...

0:13:41 > 0:13:43(CROSSTALK) when that happened, when he said to me on

0:13:43 > 0:13:47the referendum, when we called upon the Greek people to back us, not to

0:13:47 > 0:13:50capitulate, that night we met and he said it is time to surrender and

0:13:50 > 0:13:54at that point I said, not for me.

0:13:54 > 0:13:58We parted amicably, having disagreed on whether the right course

0:13:58 > 0:14:02of action at that moment was to continue the confrontation with the

0:14:02 > 0:14:07Troika creditors that were imposing upon us strings and measures that

0:14:07 > 0:14:10made it absolutely impossible for Greece, firstly,

0:14:10 > 0:14:17to recover and, secondly, to pay its debts, or to capitulate.

0:14:17 > 0:14:20When he decided as a Prime Minister's want is, to capitulate,

0:14:20 > 0:14:22it was time for me to resign.

0:14:22 > 0:14:25I was not thrown overboard.

0:14:26 > 0:14:29I was made aware of the absence and it was supposed to be

0:14:29 > 0:14:30potentially helpful.

0:14:30 > 0:14:37So the Tsipras did not want you and he knew that, and...

0:14:37 > 0:14:39It is not one voice.

0:14:39 > 0:14:40We can talk about individuals.

0:14:40 > 0:14:44You became toxic.

0:14:44 > 0:14:47I did not become toxic and I was a major inconvenience.

0:14:47 > 0:14:55Because I was the first Finance Minister.

0:14:55 > 0:14:56And this gets personal.

0:14:56 > 0:15:13Before you get there...

0:15:13 > 0:15:15Let me tell you why I was so despised.

0:15:15 > 0:15:17Either we capitulate and accept the programme

0:15:17 > 0:15:19of the previous governments that had failed so spectacularly or

0:15:20 > 0:15:21the banks would be closed.

0:15:21 > 0:15:24I made it abundantly clear that I shall never submit to such

0:15:24 > 0:15:24blackmail.

0:15:24 > 0:15:25Tsipras understood that.

0:15:25 > 0:15:27It was very important to him that I should be sidelined.

0:15:27 > 0:15:31As the Finance Minister of the Bank of State I would not sign

0:15:31 > 0:15:34on another loan knowing that we would not be able to repay it.

0:15:34 > 0:15:37This is what a sensible, rational, moderate Finance Minister should do.

0:15:37 > 0:15:40If you are running a business, the BBC or a company, you should

0:15:40 > 0:16:14never accept a loan if your existing loans and not sustainable.

0:16:14 > 0:16:15You were a radical.

0:16:15 > 0:16:17When radicalism hits it, reality trumps radicalism.

0:16:17 > 0:16:21That was the message that came out in the summer of 2015 and it is

0:16:21 > 0:16:24the message that comes out today in many different parts of Europe.

0:16:24 > 0:16:27There are powerful voices like yours that propounded a very radical

0:16:27 > 0:16:42leftist view of European economics.

0:16:42 > 0:16:44That is not the basis of it.

0:16:44 > 0:16:45Explain to me why?

0:16:45 > 0:16:49I ask you all to go to my website or any Google search engine and look

0:16:49 > 0:16:52at my proposals as Minister of Finance on the 11th of May 2015.

0:16:52 > 0:16:54What were our proposals to the Troika of lenders?

0:16:54 > 0:17:07They were the most moderate proposals we have.

0:17:07 > 0:17:09You are not in power any more.

0:17:09 > 0:17:12Greece is desperately trying to maintain the third bailout deal.

0:17:12 > 0:17:20You, in all respect...

0:17:20 > 0:17:22Ran a county that did not fail.

0:17:22 > 0:17:24We needed to have a radical minister.

0:17:24 > 0:17:26This is the depth of the European crisis.

0:17:26 > 0:17:29You need to have a radical left wing minister to propose common sense.

0:17:29 > 0:17:31Commonsense is in very short supply in Europe.

0:17:31 > 0:17:34Is Greece better off as a result of my defeat and my removal?

0:17:34 > 0:17:34No.

0:17:34 > 0:17:37We are deeper into the mire than we were a year ago.

0:17:37 > 0:17:40If my proposals had been accepted instead of the Troika,

0:17:40 > 0:17:41would we be better off?

0:17:41 > 0:17:41Definitely.

0:17:41 > 0:17:42It is indisputable.

0:17:42 > 0:17:44Look at the proposals and ask top-notch economists

0:17:44 > 0:17:46around the world, which are better or more sensible?

0:17:46 > 0:17:49Which would have given the Greek Nationals a chance to recover?

0:17:49 > 0:18:18After my removal, why did it happen?

0:18:18 > 0:18:21I don't want to get stuck on the past because there are

0:18:21 > 0:18:30important things to talk about.

0:18:30 > 0:18:33You are leaving an impression that a radical minister left

0:18:33 > 0:18:33and moderation prevailed.

0:18:33 > 0:18:35And moderate minister, released a radical minister

0:18:35 > 0:18:37proposing moderate policies was removed, and idiocy prevailed.

0:18:37 > 0:18:40Let me give you one example because your audience has to hear this.

0:18:40 > 0:18:43One of the things I would not sign into

0:18:43 > 0:18:46law was increasing the corporate tax in a country that was broken

0:18:46 > 0:18:49and the imposition of prepaying next year's tax a year in advance for

0:18:49 > 0:19:10small businesses that were broken.

0:19:10 > 0:19:12You are not reconciled to your defeat, are you?

0:19:12 > 0:19:14Well...

0:19:14 > 0:19:17You are not reconciled and you now run a movement that you

0:19:17 > 0:19:20say has the capacity to completely reshape Europe in a democratic way.

0:19:20 > 0:19:22Your argument is that the European Union

0:19:22 > 0:19:24as they are currently constituted is currently undemocratic

0:19:24 > 0:19:25and it is killing Europe.

0:19:25 > 0:19:28I just wonder how you believe you're going to persuade the European

0:19:28 > 0:19:46public as a whole of this argument?

0:19:46 > 0:19:48Firstly, the movement is not me.

0:19:48 > 0:19:51But since you are focusing on my past, and my record, it is

0:19:51 > 0:19:52important that we set it straight.

0:19:52 > 0:19:55In my six months in the finance ministry I put

0:19:55 > 0:19:56forward certain proposal.

0:19:56 > 0:19:58I consider them to be the only chance, even today,

0:19:58 > 0:20:00of Greece's recovery and of healing within the eurozone.

0:20:00 > 0:20:03I may be wrong or I may be right.

0:20:03 > 0:20:10When did that happen exactly?

0:20:10 > 0:20:12Well...

0:20:12 > 0:20:14You just slipped in a major way.

0:20:14 > 0:20:16When I was the most severe supporter of this

0:20:16 > 0:20:34process, with 62% of the votes.

0:20:34 > 0:20:37And the next day the Prime Minister said we're going to back

0:20:37 > 0:20:37the deal anyway.

0:20:37 > 0:20:40Do not say it was the Greek people who rejected the proposals.

0:20:40 > 0:20:43They are not even in first place any more.

0:20:43 > 0:20:46In that case, I need to get your ideas on the future of Europe

0:20:46 > 0:20:50because such a big debate, not least in Europe, and there is an argument

0:20:50 > 0:20:53about whether Europe can be changed from within or actually Europe is go

0:20:53 > 0:20:55to have to collapse before anything else can be rebuilt

0:20:55 > 0:20:56and something better.

0:20:56 > 0:21:15What is your view?

0:21:15 > 0:21:18There is no doubt that what we have created is a monster.

0:21:18 > 0:21:20We have created a European Union which is deeply contemptuous

0:21:20 > 0:21:21of the democratic process.

0:21:21 > 0:21:25This is the reason why I had to resign and not to pursue what I

0:21:25 > 0:21:39consider to be modern policy.

0:21:39 > 0:21:42But you wanted to stay in the eurozone and you now advise Britain

0:21:42 > 0:21:44to stay in the European Union.

0:21:44 > 0:21:45But you call it a monster.

0:21:45 > 0:21:46It seems entirely contrary.

0:21:46 > 0:21:49Well I got in a country with a monstrous regime and we either

0:21:49 > 0:21:53had to get out of it or to abandon it or to see it be dismembered.

0:21:53 > 0:21:56I wanted to be democratised after our dictatorship in the 1960s.

0:21:56 > 0:21:58The same thing applies to the European Union.

0:21:58 > 0:22:01If we had not created the European Union and the eurozone,

0:22:01 > 0:22:03we should not have had consent to the creation.

0:22:03 > 0:22:13Is that OK?

0:22:13 > 0:22:18As they currently exist...

0:22:18 > 0:22:20But now that they exist, dismembering it, fragmenting it,

0:22:20 > 0:22:24is going to take us where we want to be had we not created at.

0:22:24 > 0:22:26It is going to throw us into a terrible abyss.

0:22:26 > 0:22:27What is going to happen?

0:22:27 > 0:22:31My prediction, and tell me if you agree with me or not, is that

0:22:31 > 0:22:34there is going to be a huge fault line with Germany, Austria, the

0:22:34 > 0:22:37Netherlands, Poland all forming a zone which will immediately go to a

0:22:37 > 0:22:39big recession as its currency appreciates through the roof.

0:22:39 > 0:22:41The rest of Europe, Latin Europe with Greece,

0:22:41 > 0:22:44maybe Ireland, is going to go in a stagflation situation because their

0:22:44 > 0:22:46currencies are going to depreciate.

0:22:46 > 0:22:48This will create a vortex, and Britain as well

0:22:48 > 0:22:51as other nations that are inappropriate for all of this vortex

0:22:51 > 0:22:52are going to fall into it.

0:22:52 > 0:22:56There is no way that we as Europeans are going to escape if this monster

0:22:56 > 0:22:59of the European Union disintegrates under the weight of its hubris

0:22:59 > 0:23:00and discontent for democracy.

0:23:00 > 0:23:44It is our monster and we better civilise it.

0:23:44 > 0:23:45We have to end there.

0:23:45 > 0:23:59Thank you for being on HARDtalk.

0:23:59 > 0:24:04It was a great pleasure.