Former Prime Minister Tsipras Asserts Varoufakis Proved ‘Unsuitable’ as Greece's Finance Minister During Financial Meltdown
Within his recently unveiled personal account, titled Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he revisits the chaotic period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's account, he selected the unorthodox economist Yanis Varoufakis as the finance minister largely because of his international reputation and Varoufakis's highly compelling abilities as a public orator.
“He was, truthfully, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief had his own motives which included promoting Varoufakis's books and testing out his game theories on Greece instead of truly advocating its financial survival.
He wrote that the talks to avoid bankruptcy became “not just a way to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
On the line lay not only Greece's future but also the harsh cutbacks required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, a move which plunged Europe into further existential crisis.
Even though the referendum was carried resoundingly by voters against austerity, Tsipras had little option but to reject its outcome and agree to a rescue deal from creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who graced the covers of publications globally … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, the leader knew that it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes how his former ally had proved himself to be “unsuitable for a deal that required complex and delicate management.”
He further claimed how Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This retelling of events has provoked fury and shock among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.