Former Prime Minister Tsipras Claims Yanis Varoufakis Was ‘Unfit’ as Greek Finance Minister During Debt Crisis
Within his freshly published autobiography, named Ithaki, the ex- premier Tsipras pulls no punches as he reflects on the turbulent period of Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's version, he appointed that maverick economist Yanis Varoufakis as his treasury head mainly due to the latter's global profile along with Varoufakis's highly compelling skills as a communicator.
“He was, in reality, more of a personality and less of an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader suggests that his finance chief possessed his own agenda which involved promoting his books and testing out his theories on Greece instead of truly fighting for the country's economic stability.
He wrote how those negotiations to prevent insolvency were “not only a method of achieving a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
Amid tense discussions, Greece came perilously close to leaving the single currency area.
At stake lay not only Greece's destiny but also those punishing cutbacks required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent plea to the Kremlin to buy Greek bonds, went unanswered.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a public vote, an action which threw Europe into deeper existential crisis.
Even though the referendum was carried resoundingly by voters who opposed the cuts, the prime minister was forced to reject its outcome then agree to a bailout package from creditors which proved to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a secondary currency and distributing coupons to retirees, Tsipras knew it was game over and asked him: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and sensitive management.”
He also wrote how his confrontational style made him more and more alone with colleagues, endangered the country, while helped hawks that were pushing for Grexit.
This retelling of history has provoked anger and stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet on the matter.