Ex-PM Tsipras Claims Varoufakis Was ‘Unfit’ as Greece's Treasury Chief During Financial Meltdown
In a newly released autobiography, called Ithaki, the former premier Tsipras pulls no punches as he revisits the turbulent period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's recollections, he selected that maverick academic Varoufakis to be his finance minister primarily because of the latter's worldwide fame and his “extremely attractive” skills as a communicator.
“He was, actually, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis possessed a personal agenda which included advancing Varoufakis's books and testing out his own game theories on Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote how those discussions to avoid insolvency were “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself perilously on the brink of exiting the eurozone.
At stake lay not only the country's destiny and the punishing austerity policies demanded in exchange for financial aid from international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, a move which plunged Europe into further crisis of identity.
Even though the vote was won decisively by voters who opposed austerity, Tsipras was forced to reject its outcome and agree to a rescue deal from foreign lenders that turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving creating a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive handling.”
He further claimed that his confrontational approach left him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating Grexit.
The account of history has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
