Former Prime Minister Tsipras Asserts Varoufakis Was ‘Inappropriate’ as Greece's Finance Minister During Financial Meltdown

In a recently unveiled autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he examines the chaotic period of Greece's debt drama.

A Controversial Choice

As per Tsipras's version, Tsipras selected the unorthodox economist Yanis Varoufakis to be the treasury head primarily due to the latter's worldwide fame and his “extremely attractive” skills when it came to communicator.

“In reality, he was, in reality, more like a star rather than an economic expert,” stated the 51-year-old.

Conflicting Priorities

Tsipras suggests that Varoufakis possessed a personal agenda which included promoting Varoufakis's books and testing out his economic models using Greece instead of genuinely advocating the country's financial survival.

He wrote that the talks to avoid insolvency became “not just a way of achieving improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of his theories.”

High-Stakes Negotiations

During tense negotiations, Greece found itself dangerously close to leaving the eurozone.

At stake was not only Greece's destiny but also those harsh cutbacks demanded in exchange for rescue loans from foreign lenders.

Unsuccessful Options

Attempts to find funds from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.

Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.

Referendum Followed by Reversal

In July 2015, those excoriating conditions were subjected to a public vote, a move which threw Europe into a further existential crisis.

Although the vote was won decisively by voters who opposed austerity, the prime minister was forced to reject its outcome then agree to a rescue deal from foreign lenders that turned out to be more severe.

Breaking Point

The ex-PM revealed how he began to doubt Varoufakis quite early on.

“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the front pages of magazines globally … he gave the impression he relished his new role.”

When the minister outlined a contingency plan that included creating a secondary currency and issuing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Can you be serious?”

Enduring Criticism

In the book, the author asserts how his former ally had proved himself to be “unfit for a deal demanding complex and delicate handling.”

Tsipras further claimed that his aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.

The account of events has provoked fury along with stunned disbelief among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.

Nancy Mann
Nancy Mann

A seasoned business consultant with over 15 years of experience helping UK enterprises scale and innovate in competitive markets.