Ex-PM Tsipras Claims Yanis Varoufakis Proved ‘Unfit’ for the role of Greece's Treasury Chief During Debt Crisis
In a freshly published personal account, called Ithaki, the ex- leader Tsipras does not hold back as he examines the chaotic period of Greece's economic turmoil.
A Controversial Choice
In the ex-PM's account, he selected the unorthodox economist Yanis Varoufakis to be the finance minister largely due to the latter's international reputation and Varoufakis's very persuasive abilities when it came to communicator.
“In reality, he was, truthfully, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader alleges how Varoufakis possessed a personal agenda which included advancing Varoufakis's books and testing out his game theories on the nation rather than genuinely advocating the country's economic stability.
He noted that the talks to prevent insolvency were “not just a way to secure a better deal for the country. They were a test, a monumental chance to demonstrate the validity of his theories.”
Critical Talks
During volatile discussions, Greece came perilously on the brink of exiting the eurozone.
On the line lay both the country's destiny and the punishing austerity measures demanded in return for bailout funds from foreign lenders.
Failed Options
Attempts to secure funds elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, the punitive conditions were subjected to a popular referendum, a move that threw the EU into a further crisis of identity.
Although the vote was won decisively by those against austerity, Tsipras had little option to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency as well as issuing coupons to pensioners, the leader said he realised that it was the end questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for a deal that required complex and sensitive management.”
He also claimed that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were pushing for Grexit.
This account of history has been met with anger and shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
