Ex-PM Alexis Tsipras Asserts Varoufakis Proved ‘Inappropriate’ as Greece's Finance Minister Amid Debt Crisis
In a recently unveiled memoir, called Ithaki, the former prime minister Tsipras pulls no punches while he reflects on the turbulent period of Greece's debt drama.
A Controversial Choice
In Tsipras's version, he chose the maverick academic Yanis Varoufakis as the finance minister primarily due to his global profile and his “extremely attractive” abilities when it came to public orator.
“He was, in reality, more like a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed his own agenda which included advancing Varoufakis's books as well as testing out his own economic models using the nation instead of genuinely fighting for its economic stability.
He explained how the negotiations to avoid insolvency were “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the validity of his theories.”
High-Stakes Talks
Amid tense discussions, Greece came dangerously close to exiting the eurozone.
On the line was both the country's future but also those harsh cutbacks demanded in return for rescue loans by international creditors.
Failed Options
Attempts to find funds from other sources, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, an action which plunged Europe into deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against austerity, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end questioning him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for an agreement demanding complex and sensitive handling.”
He also wrote that Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
