Former Prime Minister Alexis Tsipras States Yanis Varoufakis Proved ‘Inappropriate’ for the role of Greek Treasury Chief During Financial Meltdown
In a recently unveiled personal account, named Ithaki, the ex- leader Tsipras spares no criticism as he examines that chaotic era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, he appointed that unorthodox academic Yanis Varoufakis to be his finance minister primarily because of his global profile along with his very persuasive abilities when it came to communicator.
“In reality, he was, actually, more of a personality and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief had his own motives which included promoting his books as well as testing out his own game theories on Greece rather than genuinely advocating its economic stability.
Tsipras wrote that the discussions to prevent bankruptcy were “not just a method of achieving a better deal for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid tense discussions, Greece found itself dangerously close to exiting the single currency area.
On the line lay not only the country's future but also the harsh austerity policies demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, a move that threw the EU into further crisis of identity.
Even though the referendum was won resoundingly by voters who opposed austerity, Tsipras had little option to ignore the result and negotiate a bailout package with foreign lenders which proved to be more severe.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
After the minister outlined a backup strategy involving creating a parallel currency as well as distributing coupons to pensioners, the leader said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the book, the author asserts how his former ally demonstrated himself to be “unfit for an agreement demanding intricate and delicate handling.”
Tsipras further wrote that Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
This retelling of events has provoked anger and shock among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.