Former Prime Minister Tsipras States Yanis Varoufakis Was ‘Inappropriate’ for the role of Greek Treasury Chief During Financial Meltdown
Within his recently unveiled personal account, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits that turbulent era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, Tsipras appointed that unorthodox academic Varoufakis to be the treasury head largely due to his worldwide fame and his very persuasive abilities as a communicator.
“He was, in reality, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how his finance chief possessed a personal motives that included advancing his books and experimenting with his own economic models using Greece instead of truly advocating the country's economic stability.
Tsipras noted how the talks to prevent bankruptcy became “not just a way of achieving a better deal for Greece. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously on the brink of leaving the eurozone.
On the line was not only Greece's future but also the harsh cutbacks demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including a desperate appeal to Russia to buy Greek bonds, went unanswered.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh conditions were put to a public vote, a move that threw the EU into a deeper crisis of identity.
Even though the referendum was won decisively by those against austerity, the prime minister was forced but to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who attracted media attention, who graced the covers of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a parallel currency and issuing coupons to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate handling.”
Tsipras also claimed how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating Grexit.
The account of events has been met with fury and shock among certain groups, while Varoufakis has kept a deafening silence on the matter.