Ex-PM Tsipras Asserts Varoufakis Was ‘Unsuitable’ as Greece's Treasury Chief During Financial Meltdown
Within his newly released personal account, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on the turbulent period during Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, he appointed the unorthodox economist Yanis Varoufakis as the finance minister mainly due to the latter's global profile along with his highly compelling skills when it came to public orator.
“He was, actually, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras claims how Varoufakis had a personal agenda that involved advancing Varoufakis's publications and experimenting with his economic models on Greece rather than genuinely fighting for its financial survival.
Tsipras noted that those discussions to prevent insolvency became “not just a way to secure improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, the country found itself dangerously close to leaving the eurozone.
At stake lay not only Greece's destiny and the severe austerity measures demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those harsh conditions were put to a public vote, an action which threw the EU into a deeper crisis of identity.
Although the vote was carried decisively by those against the cuts, Tsipras had little option to reject its outcome then agree to a bailout package from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who drew media attention, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
After the minister proposed a backup strategy involving creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was game over and asked him: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unfit for an agreement demanding intricate and sensitive management.”
He also claimed how his aggressive style left him more and more alone among peers, put Greece at risk, and assisted hardliners who were pushing for Grexit.
This account of history has provoked anger and shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
