Former Prime Minister Tsipras States Varoufakis Proved ‘Unsuitable’ for the role of Greek Treasury Chief Amid Financial Meltdown
Within his recently unveiled memoir, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on the chaotic era during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, Tsipras appointed the maverick economist Yanis Varoufakis as the treasury head primarily due to the latter's worldwide fame along with Varoufakis's very persuasive skills when it came to communicator.
“He was, actually, more like a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests how Varoufakis had a personal motives that included promoting his publications as well as experimenting with his theories using Greece instead of genuinely fighting for the country's economic stability.
He wrote how those talks to prevent bankruptcy were “not just a method to secure a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, the country came dangerously close to leaving the eurozone.
On the line lay both the country's destiny but also those severe austerity measures required in return for rescue loans from international creditors.
Failed Alternatives
Attempts to secure funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating conditions were subjected to a public vote, an action which threw the EU into a further existential crisis.
Even though the referendum was carried resoundingly by those against the cuts, the prime minister had little option but to ignore the result then negotiate a bailout package with creditors that proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When the minister outlined a backup strategy that included creating a parallel currency and issuing vouchers to retirees, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes how his former ally demonstrated himself “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras further wrote how Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, while assisted hardliners who were pushing for Grexit.
This account of events has provoked anger and shock in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.