Ex-PM Tsipras Claims Varoufakis Was ‘Unfit’ for the role of Greek Finance Minister During Debt Crisis
In a recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he examines that chaotic era during Greece's economic turmoil.
An Unconventional Choice
In Tsipras's version, he chose the maverick economist Varoufakis to be his finance minister primarily due to the latter's global profile along with Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more of a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief possessed his own motives which included promoting Varoufakis's books and experimenting with his game theories using the nation rather than genuinely advocating the country's economic stability.
Tsipras noted how those negotiations to avoid bankruptcy were “not just a way to secure improved terms for Greece. They became an experiment, an historic opportunity to demonstrate the validity of his theories.”
High-Stakes Talks
During volatile negotiations, the country found itself perilously close to exiting the single currency area.
At stake lay not only Greece's future and those punishing cutbacks demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those harsh bailout terms were subjected to a popular referendum, a move that threw the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by voters against the cuts, Tsipras was forced to ignore the result then agree to a bailout package from foreign lenders which proved to be more severe.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, the leader said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes how his former ally had proved himself to be “unfit for a deal that required complex and sensitive handling.”
Tsipras further claimed that Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating Grexit.
The account of events has provoked anger and shock among certain groups, while the former minister has so far kept a deafening silence on the matter.
