Former Prime Minister Alexis Tsipras Asserts Varoufakis Was ‘Unsuitable’ as Greek Treasury Chief During Debt Crisis

Within his newly released autobiography, called Ithaki, the former leader Alexis Tsipras does not hold back while he reflects on that turbulent period during Greece's debt drama.

An Unconventional Choice

In the ex-PM's recollections, he selected that unorthodox academic Varoufakis to be his treasury head largely due to the latter's international reputation and his highly compelling abilities as a communicator.

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

Conflicting Agendas

Tsipras suggests that his finance chief possessed his own motives that involved promoting Varoufakis's books as well as experimenting with his own economic models using Greece instead of genuinely advocating the country's financial survival.

Tsipras wrote that those discussions to prevent insolvency were “not only a method to secure a better deal for Greece. They were an experiment, an historic chance to demonstrate the validity of his theories.”

High-Stakes Talks

During tense discussions, the country came dangerously on the brink of exiting the single currency area.

On the line lay both the country's future and those harsh austerity policies demanded in exchange for rescue loans by international creditors.

Unsuccessful Options

Efforts to find funds elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.

Assisting Greece was equivalent to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.

Public Vote and Reversal

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

Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras had little option to reject its outcome and agree to a bailout package with creditors that turned out to be tougher.

Final Straw

Tsipras claimed how he began to doubt Varoufakis relatively soon.

“He was the face of negotiation, the figure who drew media attention, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”

When Varoufakis outlined a contingency plan that included establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised it was the end and asked him: “Can you be serious?”

Enduring Criticism

In the memoir, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive management.”

He further wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hawks that were advocating a Greek exit from the euro.

The retelling of history has been met with fury along with shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.