Ex-PM Tsipras Asserts Varoufakis Was ‘Unsuitable’ as Greece's Finance Minister During Financial Meltdown
In a newly released personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on the chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's account, Tsipras selected the maverick economist Yanis Varoufakis to be the treasury head largely because of his global profile and Varoufakis's highly compelling abilities as a speaker.
“In reality, he was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras alleges how Varoufakis had a personal motives which involved promoting his books and testing out his own economic models on Greece rather than genuinely fighting for the country's economic stability.
Tsipras noted that the negotiations to avoid bankruptcy became “not only a method of achieving improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came dangerously close to exiting the eurozone.
On the line was not only Greece's future and those punishing cutbacks required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those punitive bailout terms were subjected to a public vote, an action that threw Europe into a deeper crisis of identity.
Although the vote was won resoundingly by those who opposed austerity, Tsipras was forced but to reject its outcome and agree to a rescue deal with creditors which turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as issuing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes that his former ally had proved himself “unsuitable for a deal demanding complex and sensitive handling.”
He also wrote that his aggressive style left him increasingly isolated among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
This account of events has provoked fury and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.