Varoufakis advising Corbyn’s Labour ‘in some capacity’

The leader of the Labour party, Jeremy Corbyn, has revealed that former Greek Finance Minister Yanis Varoufakis is advising the British social democrats “in some capacity.”

Corbyn suggested in an interview with the Islington Tribune that Varoufakis is in contact with shadow chancellor John McDonnell, adding that Labour is interested in his view because of his experience in last year’s bailout negotiations with the eurozone.

“I think the way Greece has been treated is terrible and we should reach out to them,” said Corbyn.

“I realize we’re not in the Eurozone but it’s a question of understanding how we challenge the notion that you can cut your way to prosperity when in reality you have to grow your way to prosperity."

Corbyn met Greek Prime Minister Alexis Tsipras recently and indicated that the two men agreed on a number of issues.

"We both want to see an economic strategy around anti-austerity, and we’re both very concerned about the activities and power of the European Central Bank, although Britain is not in the Eurozone and isn’t likely to be.”

Varoufakis had suggested as early as last October that he was advising the Labour party.

“We are in conversation with the Labour party – the Corbynistas. My advice is to shift away from the narrative of austerity – pro-austerity/anti-austerity. Austerity is not the issue,” he told the BBC’s Daily Politics.

Varoufakis said he would encourage Labour to develop effective investment policies.

“Corbyn has to revive the Harold Wilson strategy of the 60s of reinventing Labour’s values in the context of a technologically driven investment program,” he said.