Former Prime Minister Tsipras Asserts Varoufakis Was ‘Unsuitable’ as Greece's Treasury Chief During Financial Meltdown
In a newly released autobiography, titled Ithaki, the ex- prime minister Tsipras does not hold back as he reflects on the chaotic period during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's account, he chose that unorthodox economist Varoufakis to be his finance minister largely due to the latter's global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, actually, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Clashing Agendas
Tsipras claims how Varoufakis had a personal agenda that included advancing his publications and experimenting with his theories on Greece rather than genuinely fighting for its financial survival.
He noted that the talks to avoid bankruptcy became “not just a method of achieving improved terms for Greece. They became a test, a monumental opportunity to prove the validity of his economic theories.”
High-Stakes Talks
Amid volatile discussions, the country found itself dangerously close to exiting the single currency area.
On the line was both Greece's future and those severe cutbacks demanded in exchange for financial aid by international creditors.
Failed Alternatives
Efforts to find funds from other sources, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by those against the cuts, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors that proved to be more severe.
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 attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy involving establishing a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for an agreement demanding complex and delicate management.”
Tsipras further claimed how Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
The account of events has provoked anger along with shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
