Former Prime Minister Alexis Tsipras Claims Varoufakis Was ‘Inappropriate’ as Greece's Treasury Chief During Financial Meltdown
Within his freshly published memoir, titled Ithaki, the former premier Tsipras pulls no punches as he revisits that chaotic period during Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's version, he chose the maverick economist Yanis Varoufakis as the treasury head primarily because of his global profile and Varoufakis's highly compelling abilities as a communicator.
“He was, truthfully, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader suggests how his finance chief possessed his own agenda that included advancing his publications as well as experimenting with his own theories on the nation rather than genuinely advocating its financial survival.
Tsipras explained that the discussions to avoid insolvency were “not only a method of achieving improved terms for the country. They became a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake was both the country's future and those punishing cutbacks required in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were put to a popular referendum, an action that threw the EU into a deeper existential crisis.
Even though the vote was won resoundingly by voters against austerity, Tsipras was forced but to ignore the result then agree to a rescue deal with foreign lenders which turned out to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy that included establishing a secondary currency as well as distributing coupons to retirees, Tsipras said he realised it was game over questioning him: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and sensitive handling.”
He also claimed how Varoufakis's confrontational style made him more and more alone among peers, endangered the country, and helped hardliners who were advocating Grexit.
The account of history has provoked anger along with stunned disbelief among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.