Former Prime Minister Tsipras Claims Varoufakis Was ‘Unsuitable’ for the role of Greece's Finance Minister During Debt Crisis
Within his newly released memoir, titled Ithaki, the former premier Tsipras pulls no punches as he revisits the chaotic period during Greece's debt drama.
An Unconventional Choice
As per Tsipras's version, Tsipras selected that unorthodox academic Varoufakis to be his treasury head mainly because of his worldwide fame and his “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more of a star and less of an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader claims how Varoufakis had his own agenda that involved advancing Varoufakis's books as well as testing out his game theories using the nation rather than genuinely fighting for its financial survival.
He wrote how those talks to avoid insolvency became “not only a way to secure a better deal for Greece. They became a test, a monumental chance to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster discussions, the country found itself perilously on the brink of leaving the eurozone.
On the line was not only the country's destiny and the punishing austerity measures required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, an action which threw the EU into a further existential crisis.
Even though the referendum was carried decisively by voters against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal from foreign lenders that turned out to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
The retelling of history has provoked fury along with shock in some quarters, while the former minister has kept a deafening silence on the matter.
