Former Prime Minister Alexis Tsipras Claims Yanis Varoufakis Was ‘Inappropriate’ as Greek Treasury Chief During Debt Crisis
In a newly released memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's financial crisis.
A Controversial Choice
In the ex-PM's recollections, he selected the maverick economist Varoufakis to be his treasury head mainly because of the latter's worldwide fame and his “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more of a star rather than an economist,” stated the 51-year-old.
Clashing Priorities
The former leader claims how his finance chief had a personal agenda that involved promoting Varoufakis's books as well as testing out his own game theories on the nation rather than genuinely advocating its economic stability.
Tsipras noted that the talks to avoid bankruptcy became “not only a way to secure improved terms for Greece. They became an experiment, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense discussions, the country came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny and those severe cutbacks required in return for financial aid from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, the punitive bailout terms were put to a public vote, a move which threw the EU into a further existential crisis.
Even though the vote was won resoundingly by those against austerity, the prime minister had little option but to reject its outcome then agree to a bailout package from creditors that turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who graced the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan that included establishing a parallel currency as well as issuing coupons to pensioners, Tsipras knew that it was game over questioning him: “Are you serious?”
Lasting Rebuke
Within the book, the author concludes how his former ally had proved himself “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras also claimed that Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
The account of events has provoked fury along with shock in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.