Ex-PM Alexis Tsipras Claims Varoufakis Proved ‘Unsuitable’ as Greek Treasury Chief Amid Financial Meltdown
Within his recently unveiled autobiography, called Ithaki, the former leader Tsipras pulls no punches as he examines the chaotic era of Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's account, Tsipras appointed that maverick academic Yanis Varoufakis to be his finance minister mainly due to his worldwide fame and his very persuasive abilities when it came to public orator.
“In reality, he was, actually, more of a star and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis possessed his own agenda that involved advancing Varoufakis's publications as well as testing out his own theories on Greece rather than truly fighting for its economic stability.
He explained that the talks to prevent insolvency became “not only a way of achieving improved terms for Greece. They became an experiment, a monumental chance to prove the validity of his ideas.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously close to exiting the single currency area.
At stake was both the country's future and the harsh austerity policies required in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, an action that threw the EU into a deeper crisis of identity.
Although the referendum was carried decisively by those against the cuts, Tsipras had little option but to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who graced the front pages of magazines globally … it seemed he relished his new role.”
When the minister outlined a contingency plan that included creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras also wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
The retelling of events has been met with anger and stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.