Greek prosecutor drops inquiry into ex-finance minister's 'Plan B'

Reuters News
Posted: Oct 20, 2015 9:46 AM

ATHENS (Reuters) - A Greek prosecutor has dropped an inquiry into plans hatched by former finance minister Yanis Varoufakis to hack into tax codes and create a parallel payment system when Greece teetered on the verge of dropping out of the euro in July, court officials said.

By his own admission, Varoufakis came up with the back-up plan to keep financial wheels turning in the country if Greece reached the point of toppling out of the euro zone. He said at the time that the move to create a parallel payment system was a contingency plan which was never implemented.

A prosecutor who investigated possible violations such as breach of personal data protection acts and breach of duty found no evidence of wrongdoing, the officials said on Tuesday.

A more senior prosecutor has yet to confirm that no further investigation is needed.

The inquiry had not focused on Varoufakis himself, who enjoyed parliamentary immunity, but rather looked into media reports on whether his back-up plan violated any laws.

Greece was on the verge of leaving the euro before striking a last-minute deal at a European Summit on July 13 which imposed a new round of austerity measures in order for talks between Athens and its creditors on a third bailout to begin.

Varoufakis resigned from the country's leftist Syriza government in disagreement over terms of the bailout.

(Reporting by Renee Maltezou; Writing by Michele Kambas; Editing by Mark Heinrich)