Varoufakis warns Greek reforms are ‘going to fail’

Former Greek finance minister Yanis Varoufakis has warned that the economic reforms his country will have to implement in return for a third bailout are “going to fail”.

In an interview with the BBC, the outspoken Syriza MP said that Greece is subject to a programme that will "go down in history as the greatest disaster of macroeconomic management ever".

However, he said that Greek Prime Minister Alexis Tsipras, who has admitted that he does not believe in the bailout, had little option but to agree to this latest round of austerity measures.

"We were given a choice between being executed and capitulating. And he decided that capitulation was the ultimate strategy,” Varoufakis said.

Varoufakis resigned as finance minister earlier this month, in what was widely viewed as a conciliatory gesture towards the Eurogroup finance ministers he had frequently clashed with.

Tsipras has announced a cabinet reshuffle, replacing several ministers, including energy minister Panagiotis Lafazanis, who voted against the reforms in parliament this week.

The third bailout could cost up to  €86 billion, in exchange for harsh austerity measures, and Greece must pass further reforms on Wednesday next week to secure the bailout.

The German parliament approved the opening of negotiations over a third bailout on Friday. However, Eurogroup president Jeroen Dijsselbloem has warned that the process will not be easy, and that negotiations could last up to four weeks.

Some Greek banks could reopen on Monday following weeks of closures, after the European Central Bank (ECB) raised the level of emergency funding available.

The European Council also approved a €7 billion bridging loan for Greece from an EU-wide emergency fund, meaning that Greece will now be able to repay its debts to two of its creditors - the ECB and International Monetary Fund (IMF) - due on Monday.