Ex-PM Tsipras States Varoufakis Was ‘Inappropriate’ as Greek Treasury Chief During Financial Meltdown

Within his newly released personal account, named Ithaki, the ex- premier Tsipras spares no criticism while he reflects on the chaotic period during Greece's debt drama.

A Controversial Appointment

In the ex-PM's version, he selected the unorthodox economist Yanis Varoufakis as the finance minister mainly because of his worldwide fame and his highly compelling skills when it came to communicator.

“In reality, he was, actually, more of a star rather than an economic expert,” wrote Tsipras.

Clashing Priorities

The former leader claims that his finance chief possessed a personal motives which included advancing his books and testing out his own theories using the nation instead of genuinely advocating its financial survival.

Tsipras wrote how those negotiations to avoid insolvency were “not just a way to secure a better deal for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”

Critical Talks

During tense discussions, the country came dangerously close to leaving the eurozone.

On the line lay both the country's future and the punishing austerity measures required in exchange for financial aid from foreign lenders.

Failed Alternatives

Efforts to find funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, were rejected.

Helping Greece was equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.

Referendum Followed by Reversal

In July 2015, those punitive bailout terms were put to a popular referendum, a move which plunged the EU into a further existential crisis.

Even though the vote was won resoundingly by those against austerity, the prime minister was forced but to ignore the result and negotiate a rescue deal with creditors that turned out to be even harsher.

Final Straw

The ex-PM revealed that he started questioning Varoufakis quite early on.

“He was the public image of the talks, the figure who drew media attention, who graced the covers of magazines globally … it seemed he was enjoying his new role.”

After the minister proposed a backup strategy involving establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”

Enduring Criticism

Within the memoir, the author asserts that his former ally had proved himself to be “unfit for an agreement that required complex and sensitive management.”

He also wrote how Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.

This account of events has provoked fury along with shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.