Former Prime Minister Alexis Tsipras Claims Yanis Varoufakis Was ‘Unfit’ as Greece's Treasury Chief During Financial Meltdown
In a newly released personal account, called Ithaki, the ex- prime minister Alexis Tsipras does not hold back while he revisits that turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's version, Tsipras chose the maverick economist Yanis Varoufakis as his finance minister largely because of the latter's worldwide fame along with Varoufakis's highly compelling abilities as a speaker.
“In reality, he was, truthfully, more of a personality rather than an economic expert,” stated Tsipras.
Clashing Agendas
Tsipras alleges how his finance chief had a personal motives that involved promoting his books as well as testing out his game theories on Greece instead of genuinely advocating the country's financial survival.
He explained how the discussions to prevent insolvency were “not just a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster discussions, Greece found itself dangerously on the brink of leaving the single currency area.
At stake was not only the country's future but also those harsh austerity measures required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a public vote, an action which plunged Europe into further crisis of identity.
Although the vote was won resoundingly by voters who opposed austerity, the prime minister had little option to ignore the result then negotiate a rescue deal with creditors that proved to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
Tsipras also wrote how his confrontational approach made him more and more alone with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
The account of events has provoked anger and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.