Ex-PM Alexis Tsipras Claims Varoufakis Proved ‘Unsuitable’ as Greek Treasury Chief Amid Debt Crisis
In a recently unveiled personal account, titled Ithaki, the former premier Tsipras spares no criticism as he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's recollections, he selected the unorthodox academic Yanis Varoufakis to be his finance minister primarily due to the latter's worldwide fame along with Varoufakis's highly compelling abilities as a communicator.
“He was, in reality, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests how Varoufakis had a personal agenda that involved advancing his books as well as experimenting with his own economic models on Greece instead of genuinely fighting for its economic stability.
Tsipras wrote that those talks to avoid insolvency became “not just a method of achieving a better deal for the country. They became a test, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid volatile discussions, Greece found itself dangerously close to leaving the eurozone.
On the line was not only Greece's destiny but also the severe austerity policies required in exchange for financial aid from international creditors.
Failed Alternatives
Efforts to secure funds from other sources, including a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a public vote, a move which threw the EU into a deeper crisis of identity.
Even though the referendum was won decisively by voters against the cuts, Tsipras was forced to reject its outcome then agree to a bailout package from creditors that proved to be more severe.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When the minister proposed a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew that it was the end questioning him: “Are you serious?”
Enduring Criticism
In the book, the author asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He also wrote that Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with fury and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
