Ex-PM Alexis Tsipras Claims Yanis Varoufakis Was ‘Unfit’ as Greek Treasury Chief During Debt Crisis
In a recently unveiled autobiography, named Ithaki, the ex- premier Tsipras spares no criticism while he reflects on the chaotic period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, he chose the maverick economist Varoufakis to be his treasury head largely due to the latter's international reputation along with his highly compelling abilities as a communicator.
“In reality, he was, in reality, more like a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief had a personal agenda which involved promoting Varoufakis's books and testing out his theories using the nation rather than truly fighting for its financial survival.
Tsipras explained that those discussions to prevent insolvency became “not just a way of achieving a better deal for the country. They became a test, an historic chance to demonstrate the validity of his theories.”
Critical Talks
Amid rollercoaster discussions, Greece found itself perilously on the brink of leaving the eurozone.
At stake was both Greece's future but also the severe cutbacks required in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh conditions were subjected to a popular referendum, a move that plunged Europe into a deeper existential crisis.
Although the vote was carried resoundingly by voters who opposed the cuts, the prime minister was forced to ignore the result and negotiate a bailout package from foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew it was game over questioning him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself “unsuitable for an agreement that required complex and delicate handling.”
Tsipras further claimed how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
The retelling of history has been met with anger along with shock among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
