Former Prime Minister Tsipras Asserts Varoufakis Proved ‘Inappropriate’ for the role of Greek Treasury Chief During Financial Meltdown
In a freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he revisits that chaotic period during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, Tsipras selected that maverick academic Yanis Varoufakis as his treasury head primarily because of the latter's international reputation and Varoufakis's highly compelling abilities as a communicator.
“In reality, he was, actually, more like a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests that his finance chief had a personal agenda that involved advancing his books and testing out his game theories using the nation rather than genuinely advocating its financial survival.
He noted how the talks to prevent insolvency became “not just a method of achieving a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster discussions, the country came perilously close to leaving the eurozone.
At stake was not only the country's future and those severe cutbacks required in return for bailout funds from foreign lenders.
Failed Options
Attempts to find funds elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, an action which plunged Europe into a deeper existential crisis.
Although the vote was won decisively by voters who opposed austerity, Tsipras had little option to reject its outcome and negotiate a bailout package from foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, the leader knew that it was the end and asked him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate handling.”
Tsipras further claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
The account of events has provoked anger along with stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
