Former Prime Minister Tsipras States Varoufakis Proved ‘Unfit’ for the role of Greek Treasury Chief Amid Debt Crisis
Within his freshly published autobiography, titled Ithaki, the ex- leader Tsipras pulls no punches as he revisits the chaotic period during Greece's debt drama.
A Controversial Choice
As per the ex-PM's account, he appointed the maverick economist Yanis Varoufakis as the finance minister mainly due to the latter's worldwide fame and Varoufakis's “extremely attractive” abilities when it came to public orator.
“In reality, he was, actually, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had his own agenda which included promoting Varoufakis's publications and testing out his economic models on Greece instead of truly advocating the country's financial survival.
He wrote how those talks to avoid bankruptcy were “not just a method of achieving a better deal for Greece. They were a test, a monumental chance to prove the truth of his theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to exiting the eurozone.
At stake was both the country's destiny and the severe cutbacks demanded in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure funds elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, a move that plunged Europe into a deeper existential crisis.
Even though the vote was won decisively by those against the cuts, Tsipras was forced to reject its outcome then agree to a bailout package with creditors that proved to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and issuing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the memoir, the author concludes how Varoufakis had proved himself “unfit for a deal that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
The account of history has been met with anger along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
