Ex-PM Tsipras States Yanis Varoufakis Was ‘Unfit’ as Greece's Treasury Chief During Debt Crisis
Within his freshly published personal account, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's account, Tsipras appointed the maverick economist Yanis Varoufakis as his finance minister primarily because of the latter's worldwide fame and Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges how his finance chief had a personal agenda which included advancing his books and experimenting with his economic models using Greece instead of genuinely advocating the country's economic stability.
He wrote how those talks to avoid bankruptcy were “not just a method to secure improved terms for the country. They were a test, a monumental chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid volatile discussions, Greece found itself perilously on the brink of leaving the eurozone.
At stake lay both Greece's destiny and those punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating conditions were subjected to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the vote was won decisively by those who opposed austerity, Tsipras was forced but to ignore the result and agree to a bailout package from creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis had proved himself “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras further wrote that his confrontational style made him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were advocating Grexit.
This account of events has provoked anger along with shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
