Former Prime Minister Tsipras States Varoufakis Proved ‘Inappropriate’ as Greek Treasury Chief Amid Financial Meltdown
In a recently unveiled memoir, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he examines that chaotic era during Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's version, he chose that unorthodox economist Varoufakis to be the treasury head primarily because of the latter's international reputation along with his “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader claims how his finance chief possessed his own motives that included advancing Varoufakis's books as well as testing out his own economic models on Greece instead of truly advocating the country's financial survival.
He explained how those discussions to prevent bankruptcy became “not just a way of achieving a better deal for Greece. They were an experiment, a monumental chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
Amid volatile discussions, Greece found itself perilously close to leaving the eurozone.
At stake was both the country's future and the severe cutbacks required in return for financial aid from foreign lenders.
Failed Options
Efforts to find funds from other sources, such as an urgent plea to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those harsh conditions were put to a public vote, a move which plunged Europe into a deeper crisis of identity.
Even though the vote was won decisively by voters who opposed austerity, Tsipras was forced but to reject its outcome then agree to a bailout package from creditors that proved to be more severe.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to retirees, the leader knew that it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras concludes that his former ally had proved himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras also claimed that his confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
This retelling of events has been met with fury along with stunned disbelief among certain groups, while the former minister has so far maintained a deafening silence on the matter.