Former Prime Minister Alexis Tsipras States Yanis Varoufakis Was ‘Unsuitable’ as Greek Treasury Chief During Financial Meltdown
Within his recently unveiled memoir, named Ithaki, the former premier Tsipras spares no criticism while he revisits the turbulent era during Greece's debt drama.
An Unconventional Choice
In Tsipras's account, he appointed that maverick academic Yanis Varoufakis to be his treasury head largely due to the latter's worldwide fame and Varoufakis's highly compelling skills as a speaker.
“He was, in reality, more like a personality and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis possessed his own motives which included promoting Varoufakis's publications as well as experimenting with his theories on Greece rather than genuinely advocating its economic stability.
Tsipras explained that those discussions to prevent bankruptcy were “not only a way of achieving a better deal for the country. They became a test, an historic opportunity to prove the validity of his theories.”
Critical Talks
During rollercoaster negotiations, Greece found itself perilously close to leaving the eurozone.
On the line lay not only the country's future and those punishing austerity measures required in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move which threw the EU into further crisis of identity.
Although the referendum was carried decisively by those who opposed the cuts, the prime minister had little option but to ignore the result 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 Varoufakis quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
When the minister outlined a contingency plan involving creating a secondary currency and distributing coupons to pensioners, the leader knew that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for an agreement that required complex and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational style left him more and more alone among peers, endangered the country, while helped hawks that were pushing for Grexit.
This account of history has provoked fury and stunned disbelief in some quarters, while the former minister has so far kept a deafening silence on the matter.
