Ex-PM Alexis Tsipras Asserts Yanis Varoufakis Proved ‘Unsuitable’ as Greek Treasury Chief During Debt Crisis
Within his newly released personal account, named Ithaki, the former leader Tsipras does not hold back while he examines that turbulent era during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's recollections, he selected the maverick economist Varoufakis to be the treasury head mainly due to the latter's global profile and his highly compelling abilities as a speaker.
“He was, actually, more like a star rather than an economic expert,” stated Tsipras.
Conflicting Agendas
The former leader claims that his finance chief had a personal agenda which included advancing Varoufakis's publications as well as experimenting with his economic models on the nation instead of truly fighting for the country's financial survival.
He wrote how those discussions to avoid bankruptcy became “not just a method to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the eurozone.
On the line was both the country's destiny and those punishing austerity policies required in return for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, an action which threw Europe into a deeper crisis of identity.
Even though the referendum was won decisively by those who opposed austerity, the prime minister had little option to ignore the result then agree to a rescue deal from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency and distributing vouchers to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
