Ex-PM Alexis Tsipras Claims Varoufakis Was ‘Inappropriate’ as Greece's Finance Minister During Debt Crisis
Within his newly released autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras spares no criticism as he reflects on the turbulent period during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he chose that unorthodox economist Varoufakis as the finance minister primarily due to the latter's worldwide fame along with his highly compelling abilities as a communicator.
“He was, in reality, more of a star and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal agenda which involved promoting Varoufakis's books as well as testing out his theories on Greece rather than genuinely fighting for the country's economic stability.
He explained how those discussions to prevent bankruptcy became “not just a method of achieving a better deal for Greece. They became an experiment, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Talks
During volatile discussions, Greece came dangerously close to exiting the single currency area.
At stake was both the country's future but also the punishing austerity measures demanded in return for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those punitive conditions were put to a popular referendum, an action which plunged Europe into a deeper existential crisis.
Although the vote was won decisively by voters against the cuts, Tsipras had little option to reject its outcome and agree to a bailout package with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to retirees, the leader knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the memoir, the author asserts how his former ally demonstrated himself “unfit for an agreement that required complex and sensitive management.”
He further claimed that his confrontational style left him more and more alone among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
The retelling of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
