Ex-PM Alexis Tsipras Claims Yanis Varoufakis Proved ‘Inappropriate’ for the role of Greek Treasury Chief During Financial Meltdown
Within his newly released memoir, called Ithaki, the ex- leader Tsipras spares no criticism as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's recollections, Tsipras selected the maverick academic Varoufakis as the finance minister primarily due to the latter's worldwide fame and Varoufakis's very persuasive skills when it came to public orator.
“He was, truthfully, more of a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief had a personal agenda that involved advancing Varoufakis's publications and experimenting with his game theories using the nation rather than truly advocating the country's financial survival.
Tsipras wrote how the talks to prevent insolvency were “not only a way to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country came perilously on the brink of exiting the eurozone.
On the line was not only the country's destiny but also those severe austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Options
Efforts to find funds from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a public vote, an action that plunged the EU into further existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras had little option but to ignore the result then negotiate a bailout package with foreign lenders which turned out to be more severe.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was the end questioning him: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts that his former ally had proved himself to be “unfit for a deal that required complex and sensitive handling.”
Tsipras further wrote how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The account of history has been met with fury along with shock among certain groups, whereas Varoufakis has kept a deafening silence on the matter.