Ex-PM Tsipras Asserts Varoufakis Was ‘Inappropriate’ as Greece's Treasury Chief During Debt Crisis
In a recently unveiled autobiography, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's financial crisis.
An Unconventional Choice
In Tsipras's version, Tsipras selected that maverick economist Yanis Varoufakis as his treasury head primarily due to the latter's worldwide fame along with his “extremely attractive” abilities as a communicator.
“He was, actually, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief possessed his own agenda which involved advancing his books as well as testing out his economic models using Greece instead of truly fighting for its economic stability.
Tsipras wrote how the discussions to stave off insolvency were “not just a method to secure a better deal for Greece. They were a test, an historic opportunity to prove the validity of his economic theories.”
Critical Negotiations
During tense negotiations, the country found itself dangerously on the brink of leaving the eurozone.
On the line lay not only Greece's destiny but also the severe cutbacks required in exchange for rescue loans from international creditors.
Failed Options
Attempts to find funds from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those punitive conditions were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Although the referendum was carried decisively by those who opposed austerity, Tsipras had little option to ignore the result then agree to a rescue deal from creditors which turned out to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, the leader said he realised it was game over and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement demanding complex and delicate management.”
He further claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, and helped hawks that were advocating Grexit.
The retelling of history has been met with anger along with stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.
