Former Prime Minister Tsipras States Varoufakis Was ‘Unsuitable’ as Greece's Finance Minister Amid Debt Crisis
Within his freshly published autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that chaotic period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's account, he appointed the unorthodox academic Varoufakis to be his finance minister largely due to his global profile and Varoufakis's highly compelling skills as a communicator.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges how his finance chief had his own motives that involved advancing his books as well as testing out his own theories on Greece instead of genuinely fighting for the country's financial survival.
Tsipras noted that the negotiations to stave off bankruptcy became “not just a way of achieving a better deal for the country. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself dangerously on the brink of leaving the eurozone.
At stake was both Greece's future and the harsh austerity policies demanded in return for rescue loans by international creditors.
Failed Alternatives
Efforts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the excoriating conditions were put to a popular referendum, an action which plunged Europe into a further crisis of identity.
Although the vote was won decisively by those who opposed austerity, Tsipras had little option to ignore the result and agree to a rescue deal from foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
After the minister proposed a contingency plan that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts how his former ally demonstrated himself to be “unfit for a deal that required intricate and sensitive handling.”
He further claimed that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were pushing for Grexit.
The retelling of history has been met with anger and shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.