Ex-PM Alexis Tsipras Claims Varoufakis Proved ‘Unsuitable’ as Greece's Treasury Chief During Financial Meltdown
Within his newly released personal account, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that chaotic era of Greece's economic turmoil.
A Controversial Appointment
In Tsipras's account, he chose that maverick economist Yanis Varoufakis as his treasury head primarily due to his worldwide fame and Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims that his finance chief had his own motives that involved promoting his publications and testing out his own economic models on the nation rather than genuinely advocating the country's economic stability.
He explained how the discussions to prevent insolvency were “not just a way of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came dangerously close to leaving the eurozone.
On the line lay not only the country's destiny and those harsh austerity measures demanded in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a public vote, a move that threw Europe into a further existential crisis.
Even though the vote was won decisively by voters who opposed the cuts, the prime minister was forced but to reject its outcome then agree to a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving creating a secondary currency and distributing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts how Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate management.”
He further claimed how his confrontational approach left him more and more alone among peers, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This account of events has provoked anger and shock in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
