Former Prime Minister Tsipras States Varoufakis Was ‘Unfit’ for the role of Greek Treasury Chief During Financial Meltdown
Within his recently unveiled autobiography, called Ithaki, the ex- premier Tsipras pulls no punches as he reflects on the turbulent era during Greece's debt drama.
A Controversial Choice
In the ex-PM's account, Tsipras selected the unorthodox academic Yanis Varoufakis to be the finance minister largely because of his global profile along with Varoufakis's “extremely attractive” skills as a communicator.
“In reality, he was, actually, more of a personality and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief had a personal motives that involved advancing his publications and testing out his theories using Greece instead of truly advocating its economic stability.
Tsipras noted that the discussions to prevent insolvency became “not just a way to secure a better deal for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
Critical Talks
During rollercoaster discussions, the country found itself perilously close to exiting the single currency area.
On the line was not only Greece's destiny and the severe austerity policies demanded in exchange for financial aid by foreign lenders.
Failed Options
Efforts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the punitive conditions were put to a public vote, an action which threw the EU into deeper crisis of identity.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a contingency plan that included creating a parallel currency and issuing vouchers to retirees, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts how Varoufakis had proved himself “unsuitable for a deal that required complex and sensitive handling.”
Tsipras further wrote how his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were advocating Grexit.
The retelling of events has provoked fury and shock among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
