Ex-PM Alexis Tsipras Asserts Yanis Varoufakis Was ‘Inappropriate’ as Greek Treasury Chief During Financial Meltdown
Within his freshly published autobiography, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on the turbulent era of Greece's debt drama.
A Controversial Choice
As per Tsipras's version, Tsipras appointed that unorthodox economist Yanis Varoufakis as the finance minister primarily due to his global profile and his highly compelling skills when it came to communicator.
“In reality, he was, truthfully, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims how Varoufakis possessed his own agenda which involved promoting Varoufakis's publications as well as testing out his own theories on Greece instead of truly fighting for the country's financial survival.
He explained how those discussions to avoid insolvency were “not only a method of achieving a better deal for the country. They became an experiment, an historic chance to demonstrate the truth of his ideas.”
Critical Talks
Amid volatile negotiations, the country found itself perilously on the brink of exiting the single currency area.
At stake was not only the country's destiny but also those harsh austerity policies demanded in exchange for bailout funds from foreign lenders.
Failed Options
Attempts to find financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move which threw Europe into further crisis of identity.
Even though the vote was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome and agree to a bailout package with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew that it was game over and asked him: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He also claimed that Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners that were pushing for Grexit.
The account of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
