Former Prime Minister Alexis Tsipras Claims Yanis Varoufakis Proved ‘Inappropriate’ as Greece's Treasury Chief During Debt Crisis

In a recently unveiled autobiography, titled Ithaki, the former leader Tsipras spares no criticism as he revisits the turbulent era during Greece's financial crisis.

An Unconventional Choice

According to Tsipras's version, Tsipras selected that maverick economist Varoufakis to be his finance minister largely due to the latter's international reputation along with Varoufakis's highly compelling abilities as a speaker.

“In reality, he was, in reality, more of a personality and less of an economic expert,” wrote Tsipras.

Conflicting Priorities

The former leader suggests how his finance chief had a personal agenda which included promoting his books and experimenting with his own game theories using the nation instead of truly fighting for the country's economic stability.

He wrote that those negotiations to prevent insolvency were “not just a method to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”

High-Stakes Negotiations

During rollercoaster discussions, Greece found itself dangerously on the brink of leaving the eurozone.

At stake lay not only Greece's future but also the punishing austerity policies required in exchange for bailout funds from international creditors.

Unsuccessful Alternatives

Attempts to secure financing from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.

Helping Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras during their meeting.

Public Vote and Reversal

That summer, those harsh conditions were put to a public vote, an action which threw Europe into a deeper crisis of identity.

Even though the referendum was won resoundingly by those against the cuts, Tsipras had little option but to reject its outcome then agree to a bailout package with foreign lenders which proved to be even harsher.

Breaking Point

The ex-PM claimed that he started questioning his finance minister relatively soon.

“He was the face of negotiation, the man who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”

When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to retirees, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”

Enduring Rebuke

In the memoir, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and delicate handling.”

Tsipras further wrote how his confrontational style left him more and more alone with colleagues, put Greece at risk, and helped hawks who were pushing for Grexit.

The retelling of events has been met with fury along with shock among certain groups, whereas the former minister has so far maintained a deafening silence regarding these claims.

Steven Barton
Steven Barton

Aisha Patel is a journalist and editor with over a decade of experience covering Asian affairs and digital media trends.