Former Prime Minister Alexis Tsipras States Varoufakis Was ‘Unsuitable’ as Greek Finance Minister During Debt Crisis
Within his recently unveiled autobiography, titled Ithaki, the former premier Tsipras spares no criticism while he examines the chaotic era of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's account, he selected the unorthodox economist Varoufakis as his finance minister mainly because of the latter's international reputation and Varoufakis's very persuasive skills as a speaker.
“In reality, he was, truthfully, more like a personality and less of an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis had his own motives that involved advancing Varoufakis's publications as well as testing out his own game theories using the nation instead of genuinely fighting for its financial survival.
He wrote how those talks to avoid insolvency became “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece found itself dangerously on the brink of exiting the eurozone.
At stake was both Greece's future but also those severe cutbacks demanded in return for rescue loans from international creditors.
Failed Alternatives
Attempts to secure funds from other sources, such as an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were put to a popular referendum, an action which threw the EU into further crisis of identity.
Even though the referendum was carried decisively by those against austerity, Tsipras had little option to ignore the result then negotiate a bailout package from foreign lenders which turned out to be even harsher.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency as well as distributing vouchers to pensioners, the leader knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for an agreement demanding intricate and sensitive management.”
Tsipras also wrote how Varoufakis's confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The account of history has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
