Former Prime Minister Alexis Tsipras States Yanis Varoufakis Proved ‘Inappropriate’ as Greek Finance Minister During Debt Crisis
Within his newly released personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits the chaotic period during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, he appointed that unorthodox economist Yanis Varoufakis as his treasury head mainly due to his worldwide fame along with Varoufakis's very persuasive abilities when it came to communicator.
“In reality, he was, truthfully, more of a personality rather than an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis had a personal agenda which included advancing Varoufakis's books and testing out his own game theories using the nation instead of genuinely fighting for its financial survival.
He noted that those discussions to prevent bankruptcy became “not just a method of achieving improved terms for Greece. They were an experiment, an historic chance to demonstrate the truth of his theories.”
Critical Talks
Amid tense negotiations, the country found itself dangerously close to leaving the single currency area.
At stake lay both the country's destiny but also those punishing cutbacks demanded in return for bailout funds by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move that plunged Europe into a deeper crisis of identity.
Although the vote was won resoundingly by voters against the cuts, Tsipras had little option to ignore the result and negotiate a rescue deal with creditors that proved to be tougher.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a backup strategy that included creating a parallel currency and issuing coupons to pensioners, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate management.”
He further wrote how Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, while assisted hawks that were pushing for Grexit.
The account of events has been met with fury and shock among certain groups, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
