Ex-PM Tsipras States Varoufakis Was ‘Unsuitable’ as Greece's Treasury Chief During Debt Crisis
In a newly released autobiography, called Ithaki, the ex- premier Alexis Tsipras spares no criticism while he examines the turbulent era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he chose the maverick academic Yanis Varoufakis as his treasury head primarily because of his global profile along with Varoufakis's highly compelling skills as a speaker.
“In reality, he was, in reality, more of a personality and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader alleges that Varoufakis possessed a personal motives that involved advancing Varoufakis's publications as well as testing out his own economic models on Greece instead of genuinely advocating the country's economic stability.
He explained that the discussions to stave off insolvency became “not only a way to secure improved terms for the country. They were a test, an historic chance to prove the truth of Varoufakis's economic theories.”
Critical Talks
During rollercoaster discussions, Greece found itself dangerously on the brink of exiting the eurozone.
On the line lay not only Greece's destiny but also those punishing austerity policies demanded in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive conditions were subjected to a public vote, a move that plunged the EU into a deeper existential crisis.
Even though the vote was won resoundingly by voters against the cuts, the prime minister was forced but to ignore the result then agree to a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who graced the front pages of publications globally … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, the leader said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unfit for an agreement demanding complex and delicate handling.”
Tsipras also claimed how his confrontational approach made him increasingly isolated among peers, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The retelling of history has provoked fury and shock in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
