Former Prime Minister Alexis Tsipras States Yanis Varoufakis Proved ‘Unsuitable’ as Greek Treasury Chief During Debt Crisis

Within his freshly published personal account, named Ithaki, the former leader Alexis Tsipras does not hold back while he reflects on that turbulent era of Greece's financial crisis.

A Controversial Appointment

In Tsipras's account, he selected that unorthodox academic Yanis Varoufakis to be the treasury head mainly because of the latter's worldwide fame along with Varoufakis's highly compelling abilities as a communicator.

“He was, truthfully, more like a star rather than an economist,” recalled the 51-year-old.

Conflicting Priorities

Tsipras alleges that his finance chief had a personal motives which involved promoting Varoufakis's publications as well as experimenting with his own economic models using the nation instead of genuinely fighting for the country's financial survival.

Tsipras noted that those negotiations to stave off bankruptcy were “not only a way to secure a better deal for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”

Critical Negotiations

During tense negotiations, the country came dangerously close to leaving the single currency area.

At stake lay both the country's destiny and the harsh cutbacks required in return for bailout funds by foreign lenders.

Unsuccessful Options

Attempts to find funds from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, went unanswered.

Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.

Public Vote and U-Turn

That summer, those punitive conditions were subjected to a popular referendum, an action that threw Europe into a deeper crisis of identity.

Even though the referendum was carried decisively by voters who opposed the cuts, Tsipras was forced but to reject its outcome then agree to a bailout package from creditors which proved to be tougher.

Breaking Point

Tsipras revealed how he started questioning Varoufakis relatively soon.

“He was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”

When the minister proposed a contingency plan that included creating a secondary currency and distributing vouchers to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”

Lasting Rebuke

In the memoir, the author concludes that his former ally had proved himself “unsuitable for a deal demanding complex and sensitive handling.”

He also wrote how his confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.

This retelling of history has provoked fury and shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.