Former Prime Minister Alexis Tsipras Asserts Varoufakis Was ‘Inappropriate’ for the role of Greece's Treasury Chief Amid Financial Meltdown
In a freshly published autobiography, named Ithaki, the former premier Tsipras pulls no punches as he revisits the turbulent period of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's account, he appointed the maverick economist Yanis Varoufakis to be the finance minister largely due to his international reputation along with his very persuasive skills as a communicator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader alleges that his finance chief possessed a personal motives that involved promoting his books as well as testing out his own economic models on Greece instead of truly fighting for its economic stability.
Tsipras wrote that those discussions to stave off insolvency were “not just a method to secure improved terms for Greece. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
During tense discussions, the country came dangerously on the brink of leaving the single currency area.
At stake lay both the country's destiny and those harsh cutbacks demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were subjected to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the vote was won resoundingly by voters against the cuts, the prime minister had little option but to ignore the result then negotiate a bailout package from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal demanding intricate and delicate management.”
He further wrote that Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, and assisted hawks who were advocating Grexit.
This retelling of history has provoked fury and shock among certain groups, while the former minister has kept a deafening silence regarding these claims.