Former Prime Minister Tsipras States Yanis Varoufakis Proved ‘Unfit’ as Greece's Finance Minister During Debt Crisis
Within his newly released personal account, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on the turbulent era during Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, he chose the maverick academic Varoufakis as his treasury head primarily due to his global profile and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, actually, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges that Varoufakis possessed a personal motives that included advancing Varoufakis's publications and experimenting with his game theories using the nation instead of truly advocating the country's financial survival.
He wrote that those talks to stave off insolvency became “not only a way of achieving a better deal for Greece. They became an experiment, a monumental chance to demonstrate the validity of his economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country came perilously on the brink of exiting the eurozone.
On the line lay both the country's future and those harsh austerity measures required in exchange for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
In July 2015, the harsh conditions were subjected to a public vote, a move which threw the EU into a deeper crisis of identity.
Although the referendum was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who graced the front pages of magazines globally … it seemed he was enjoying his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, the author asserts how his former ally demonstrated himself “unsuitable for an agreement that required complex and sensitive handling.”
He further claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, while helped hardliners that were advocating Grexit.
The account of events has provoked anger along with stunned disbelief among certain groups, whereas the former minister has kept a deafening silence on the matter.