Former Prime Minister Alexis Tsipras Asserts Varoufakis Was ‘Unfit’ as Greek Treasury Chief During Financial Meltdown
In a newly released autobiography, called Ithaki, the ex- premier Alexis Tsipras pulls no punches while he examines the turbulent period during Greece's economic turmoil.
A Controversial Choice
As per Tsipras's account, Tsipras chose that maverick economist Varoufakis as the treasury head mainly because of his worldwide fame and Varoufakis's very persuasive skills as a speaker.
“He was, in reality, more of a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had his own motives which included advancing his books as well as experimenting with his game theories using Greece rather than genuinely advocating its financial survival.
Tsipras explained that those discussions to avoid bankruptcy were “not only a way of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During tense discussions, the country found itself perilously on the brink of exiting the eurozone.
At stake was both Greece's destiny and those punishing austerity measures required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure funds from other sources, including a desperate plea to the Kremlin to purchase Greek bonds, went unanswered.
Assisting Greece would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, a move that plunged Europe into further crisis of identity.
Even though the vote was carried resoundingly by voters against austerity, the prime minister was forced but to ignore the result then negotiate a rescue deal from creditors that turned out to be tougher.
Final Straw
Tsipras revealed that 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 … he gave the impression he relished the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate management.”
Tsipras further claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
This account of events has provoked anger along with shock in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.