Ex-PM Alexis Tsipras Asserts Varoufakis Was ‘Unsuitable’ as Greece's Finance Minister During Debt Crisis
Within his freshly published autobiography, named Ithaki, the ex- prime minister Tsipras pulls no punches while he reflects on the turbulent era during Greece's debt drama.
A Controversial Appointment
As per the ex-PM's account, he chose the unorthodox academic Varoufakis as the finance minister mainly because of the latter's global profile along with his highly compelling skills when it came to public orator.
“He was, in reality, more like a personality rather than an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader claims that Varoufakis had his own motives that involved advancing Varoufakis's books as well as experimenting with his game theories on Greece instead of genuinely fighting for its economic stability.
He noted that the talks to stave off bankruptcy were “not just a method to secure a better deal for the country. They were a test, a monumental opportunity to prove the truth of his economic theories.”
Critical Negotiations
Amid volatile discussions, Greece came perilously close to exiting the eurozone.
On the line lay not only the country's destiny and those punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive bailout terms were put to a popular referendum, an action which threw the EU into a deeper existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome and agree to a bailout package from creditors that proved to be more severe.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving creating a parallel currency and issuing coupons to pensioners, the leader said he realised it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis had proved himself to be “unfit for an agreement demanding complex and delicate management.”
Tsipras also wrote how Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.