Ex-PM Tsipras States Varoufakis Proved ‘Unfit’ as Greece's Treasury Chief During Debt Crisis
Within his recently unveiled memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, Tsipras selected the unorthodox academic Varoufakis as the treasury head primarily due to the latter's worldwide fame along with Varoufakis's very persuasive skills as a public orator.
“In reality, he was, actually, more like a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed a personal agenda which included advancing Varoufakis's publications and testing out his own theories on the nation rather than truly advocating the country's economic stability.
He explained how those negotiations to stave off insolvency were “not only a way to secure a better deal for Greece. They became a test, an historic chance to demonstrate the validity of his theories.”
Critical Talks
During tense discussions, Greece came dangerously on the brink of exiting the eurozone.
On the line was not only Greece's destiny but also the punishing austerity measures demanded in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure funds elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those harsh conditions were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Even though the vote was carried decisively by voters against the cuts, Tsipras had little option but to reject its outcome then agree to a bailout package with creditors which turned out to be more severe.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who attracted publicity, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency and distributing coupons to retirees, the leader knew that it was game over questioning him: “Are you serious?”
Lasting Criticism
Within the book, the author concludes how Varoufakis had proved himself to be “unfit for an agreement that required complex and delicate handling.”
He also wrote that Varoufakis's aggressive style left him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
The account of history has been met with fury and shock among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
