1. A Blueprint for Greece’s Recovery in a Consolidating Europe Yanis Varoufakis Minister of Finance Hellenic Republic 7 th May 2015

2. Source: European Commission (2014), IMF (2014). IMF Baseline Scenario for the Evolution of Debt 2014 – 2019 (% of GDP) - Contribution by factor Backward Induction Dynamic inconsistency

3. Austerity vs nominal GDP Growth 2009 to 2014 Structural Deficit Reduction  Nominal GDP Reduction   Nominal GDP Increase

4. Wage decline vs Export Growth

5. Looking Forward - Investment Privatisations – public equity stake Development Bank (DevBank) to mobilise public assets DevBank collaborates with EIB, Juncker Plan etc DevBank’s shares transferred to pension funds

6. Looking Forward – Private banks Identify the size/composition of NPLs at each bank. Establish the correct special purpose entity structure (BB) Swaps that un-clog the circuits of credit

7. Looking Forward – Real Economy

8. Looking Forward – Synergistic Reforms

9. Looking Forward – Democratic Governance Reforms

10. Elements of an Agreement Immediate reforms Fiscal plans and a sensible DSA Privatisations focused on investment, gvt equity VAT reform An IRS-like Tax and Customs Commission, under the Parliament’s jurisdiction Pension reform Judicial, out-of-court workouts

11. Elements of an Agreement Beyond June Investment Package Public Debt Management Anti-Poverty Drive

12. THANK YOU