Ex-PM Tsipras Asserts Yanis Varoufakis Was ‘Unfit’ as Greek Treasury Chief Amid Debt Crisis
In a freshly published personal account, called Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras selected that maverick economist Yanis Varoufakis to be his treasury head mainly because of his international reputation along with his highly compelling skills as a communicator.
“He was, in reality, more like a star rather than an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed a personal motives that involved advancing Varoufakis's publications as well as experimenting with his theories on the nation instead of truly fighting for its economic stability.
Tsipras explained how the talks to prevent insolvency became “not only a way to secure a better deal for the country. They became a test, an historic chance to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously close to exiting the single currency area.
On the line lay both Greece's future and the harsh austerity policies required in return for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a public vote, an action which plunged the EU into a deeper crisis of identity.
Although the vote was won resoundingly by those who opposed the cuts, the prime minister was forced but to reject its outcome then agree to a rescue deal with creditors which proved to be more severe.
Breaking Point
The ex-PM 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 the world over … it seemed he relished the spotlight.”
When the minister proposed a contingency plan that included creating a secondary currency and distributing vouchers to retirees, the leader said he realised it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
He also wrote how his confrontational style made him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
This retelling of history has provoked anger along with stunned disbelief among certain groups, while the former minister has kept a deafening silence regarding these claims.
