Former Prime Minister Tsipras Claims Yanis Varoufakis Proved ‘Inappropriate’ as Greek Treasury Chief During Debt Crisis
Within his recently unveiled autobiography, named Ithaki, the former leader Alexis Tsipras does not hold back as he revisits that chaotic period during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's account, Tsipras appointed the unorthodox economist Varoufakis as his finance minister mainly because of his international reputation along with Varoufakis's highly compelling abilities when it came to public orator.
“In reality, he was, actually, more of a celebrity rather than an economist,” stated the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had a personal motives which included promoting Varoufakis's books as well as experimenting with his theories using Greece rather than truly advocating the country's financial survival.
He explained how those negotiations to prevent insolvency were “not just a way to secure a better deal for the country. They became a test, an historic chance to prove the validity of his economic theories.”
Critical Negotiations
During tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny and those harsh austerity measures demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, such as a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were put to a popular referendum, a move which plunged the EU into further crisis of identity.
Even though the vote was carried resoundingly by voters who opposed the cuts, the prime minister had little option to reject its outcome and negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan that included creating a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, Tsipras concludes how his former ally demonstrated himself “unfit for a deal that required complex and sensitive handling.”
Tsipras further wrote how his aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hawks that were pushing for Grexit.
The account of history has been met with fury and shock in some quarters, whereas the former minister has maintained a conspicuous quiet on the matter.