Former Prime Minister Alexis Tsipras States Yanis Varoufakis Was ‘Inappropriate’ as Greece's Treasury Chief Amid Debt Crisis

In a freshly published personal account, titled Ithaki, the former leader Tsipras does not hold back while he examines that turbulent period during Greece's debt drama.

An Unconventional Choice

According to the ex-PM's account, he chose that unorthodox economist Yanis Varoufakis as the finance minister largely because of his international reputation along with his very persuasive skills as a speaker.

“In reality, he was, actually, more like a celebrity and less of an economist,” recalled Tsipras.

Conflicting Agendas

Tsipras alleges how his finance chief had his own motives that included promoting Varoufakis's publications as well as experimenting with his economic models using Greece rather than truly fighting for the country's economic stability.

Tsipras explained how the talks to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”

High-Stakes Talks

During tense negotiations, the country found itself perilously on the brink of exiting the single currency area.

At stake lay both the country's future but also the punishing cutbacks demanded in exchange for financial aid from international creditors.

Unsuccessful Alternatives

Attempts to secure financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.

Helping the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.

Public Vote Followed by U-Turn

In July 2015, the excoriating conditions were put to a public vote, a move that plunged the EU into deeper existential crisis.

Although the referendum was carried decisively by voters who opposed the cuts, Tsipras had little option to reject its outcome then negotiate a rescue deal from foreign lenders that turned out to be more severe.

Breaking Point

Tsipras revealed how he began to doubt Varoufakis quite early on.

“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications the world over … it seemed he relished his new role.”

When the minister outlined a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, the leader knew it was game over questioning Varoufakis: “Are you serious?”

Enduring Rebuke

In the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive management.”

He further wrote how his aggressive approach left him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.

The retelling of events has been met with anger along with shock among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.