Ex-PM Tsipras States Yanis Varoufakis Was ‘Unsuitable’ as Greek Treasury Chief During Financial Meltdown
In a freshly published autobiography, titled Ithaki, the former premier Tsipras spares no criticism while he reflects on that chaotic era of Greece's economic turmoil.
A Controversial Appointment
In Tsipras's recollections, Tsipras chose that maverick economist Varoufakis as his treasury head largely due to the latter's worldwide fame along with his “extremely attractive” skills as a public orator.
“He was, in reality, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief had a personal agenda that included advancing his publications and experimenting with his economic models on the nation rather than truly advocating the country's economic stability.
Tsipras noted how those talks to stave off bankruptcy were “not only a method of achieving a better deal for the country. They became an experiment, an historic opportunity to prove the validity of his theories.”
Critical Negotiations
During volatile negotiations, the country came perilously close to exiting the single currency area.
On the line was not only Greece's destiny but also those harsh austerity policies demanded in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, those harsh bailout terms were subjected to a public vote, a move which plunged the EU into deeper existential crisis.
Although the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced but to reject its outcome and agree to a bailout package with foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After the minister proposed a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras said he realised it was game over questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes how Varoufakis had proved himself “unsuitable for a deal demanding intricate and sensitive management.”
Tsipras further claimed how Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has provoked anger along with shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.