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Ex-PM Tsipras Claims Varoufakis Was ‘Unfit’ for the role of Greek Finance Minister During Debt Crisis

Within his freshly published personal account, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that turbulent period during Greece's financial crisis.

An Unconventional Appointment

According to Tsipras's version, Tsipras chose the unorthodox academic Yanis Varoufakis as his treasury head largely because of his international reputation along with Varoufakis's “extremely attractive” abilities when it came to communicator.

“In reality, he was, truthfully, more like a celebrity and less of an economic expert,” recalled Tsipras.

Clashing Agendas

The former leader alleges that his finance chief possessed a personal agenda which included advancing Varoufakis's publications and testing out his game theories on the nation instead of truly advocating the country's financial survival.

Tsipras wrote that those negotiations to prevent insolvency were “not just a method of achieving a better deal for the country. They were an experiment, a monumental opportunity to prove the validity of his ideas.”

High-Stakes Negotiations

During rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.

On the line was both Greece's destiny but also those harsh cutbacks required in exchange for bailout funds from foreign lenders.

Unsuccessful Options

Attempts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, were rejected.

Helping the indebted country would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.

Referendum Followed by Reversal

In July 2015, the harsh bailout terms were subjected to a popular referendum, a move which threw the EU into further crisis of identity.

Even though the referendum was carried resoundingly by voters against the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal with creditors that proved to be tougher.

Final Straw

Tsipras revealed that he began to doubt his finance minister quite early on.

“Varoufakis was the face of negotiation, the figure who attracted media attention, who graced the covers of publications globally … it seemed he relished the spotlight.”

When the minister outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to retirees, the leader knew that it was the end questioning Varoufakis: “Are you serious?”

Enduring Criticism

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

Tsipras also claimed how his confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for Grexit.

The retelling of history has provoked fury and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.

Written by

Bruce Booth

Elara Vance is a digital strategist and content creator with over a decade of experience in tech journalism and trend analysis across European markets.

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