Ex-PM Tsipras Claims Yanis Varoufakis Was ‘Inappropriate’ for the role of Greek Treasury Chief Amid Debt Crisis
Within his newly released memoir, called Ithaki, the ex- prime minister Tsipras does not hold back as he examines the turbulent period of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's account, he selected the unorthodox economist Yanis Varoufakis as his finance minister primarily because of his global profile along with his “extremely attractive” skills as a speaker.
“He was, truthfully, more of a star rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader claims how Varoufakis had a personal agenda which involved advancing Varoufakis's publications and experimenting with his economic models using Greece instead of genuinely fighting for the country's financial survival.
He wrote how those talks to prevent insolvency were “not just a method of achieving improved terms for the country. They were an experiment, a monumental chance to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid tense negotiations, the country came dangerously close to leaving the eurozone.
On the line was both the country's future and those harsh austerity policies required in exchange for bailout funds by international creditors.
Failed Alternatives
Efforts to secure funds from other sources, such as a desperate plea to Russia to buy 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 told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that plunged Europe into further existential crisis.
Even though the referendum was won resoundingly by those against austerity, Tsipras was forced but to ignore the result and negotiate a bailout package with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
When the minister outlined a contingency plan involving creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras further wrote that his confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
