Ex-PM Tsipras Asserts Varoufakis Was ‘Inappropriate’ for the role of Greek Treasury Chief During Debt Crisis
In a freshly published memoir, called Ithaki, the ex- leader Tsipras spares no criticism as he revisits that turbulent period of Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, he appointed the unorthodox academic Yanis Varoufakis to be his treasury head mainly because of the latter's global profile along with Varoufakis's highly compelling abilities as a public orator.
“He was, actually, more of a celebrity and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief had a personal motives which involved advancing Varoufakis's books as well as testing out his own economic models on the nation instead of truly fighting for the country's financial survival.
Tsipras noted how those discussions to prevent bankruptcy became “not just a way to secure improved terms for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile discussions, Greece came perilously on the brink of exiting the eurozone.
On the line lay both Greece's future but also those punishing cutbacks required in exchange for financial aid by international creditors.
Unsuccessful Options
Efforts to secure funds from other sources, such as a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move which plunged Europe into deeper existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, Tsipras was forced but to reject its outcome then agree to a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and distributing vouchers to retirees, Tsipras said he realised it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote how Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were pushing for Grexit.
The account of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
