Ex-PM Tsipras States Varoufakis Proved ‘Unsuitable’ for the role of Greece's Treasury Chief During Debt Crisis

In a freshly published memoir, called Ithaki, the former leader Alexis Tsipras does not hold back while he examines that turbulent period of Greece's economic turmoil.

An Unconventional Choice

According to Tsipras's account, he appointed the maverick economist Varoufakis as his treasury head largely due to the latter's global profile along with Varoufakis's “extremely attractive” skills as a public orator.

“In reality, he was, actually, more like a personality rather than an economist,” recalled the 51-year-old.

Clashing Priorities

The former leader suggests how Varoufakis had his own motives which included advancing his publications and experimenting with his game theories on Greece rather than genuinely fighting for the country's economic stability.

Tsipras explained that those discussions to stave off bankruptcy became “not just a way to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”

Critical Talks

During volatile discussions, the country came perilously close to leaving the single currency area.

At stake was not only the country's destiny and the harsh austerity measures required in exchange for rescue loans by international creditors.

Failed Options

Attempts to find funds elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.

Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.

Referendum and Reversal

That summer, the punitive conditions were put to a public vote, a move that plunged Europe into deeper existential crisis.

Even though the referendum was won decisively by voters against the cuts, Tsipras had little option to ignore the result then negotiate a bailout package with creditors that turned out to be tougher.

Breaking Point

Tsipras claimed that he started questioning Varoufakis quite early on.

“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”

After the minister outlined a contingency plan involving establishing a parallel currency and distributing coupons to retirees, the leader said he realised it was game over and asked him: “Are you serious?”

Lasting Criticism

In the book, Tsipras asserts that Varoufakis demonstrated himself “unfit for an agreement demanding complex and sensitive handling.”

Tsipras also claimed how his aggressive approach left him more and more alone among peers, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.

The retelling of history has been met with anger and shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.