Ex-PM Tsipras Asserts Yanis Varoufakis Was ‘Unsuitable’ for the role of Greek Treasury Chief During Debt Crisis

Within his newly released personal account, called Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on the chaotic era during Greece's financial crisis.

An Unconventional Appointment

According to Tsipras's recollections, he selected that maverick economist Yanis Varoufakis to be the treasury head primarily because of his international reputation along with his very persuasive abilities as a speaker.

“In reality, he was, in reality, more of a celebrity and less of an economic expert,” recalled the 51-year-old.

Clashing Priorities

The former leader alleges that Varoufakis possessed his own agenda that included advancing Varoufakis's books and testing out his economic models on the nation rather than truly fighting for the country's financial survival.

He explained how the talks to stave off bankruptcy became “not only a way to secure a better deal for Greece. They became a test, a monumental chance to prove the validity of Varoufakis's economic theories.”

High-Stakes Negotiations

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

At stake was not only the country's future and those harsh cutbacks required in exchange for financial aid from foreign lenders.

Unsuccessful Alternatives

Efforts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, fell on stony ground.

Assisting Greece was tantamount to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.

Public Vote and U-Turn

In July 2015, those excoriating conditions were subjected to a popular referendum, an action which threw Europe into a further crisis of identity.

Even though the vote was won resoundingly by voters who opposed austerity, Tsipras was forced but to reject its outcome and negotiate a rescue deal from creditors that turned out to be tougher.

Breaking Point

The ex-PM claimed how he began to doubt Varoufakis relatively soon.

“He was the face of the talks, the figure who drew media attention, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”

After the minister proposed a contingency plan that included establishing a secondary currency and distributing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”

Lasting Criticism

In the book, the author concludes that his former ally had proved himself “unfit for an agreement that required intricate and delicate management.”

Tsipras further wrote that Varoufakis's confrontational approach made him more and more alone among peers, endangered the country, while helped hawks that were advocating a Greek exit from the euro.

This retelling of history has been met with fury along with shock in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.

Rebecca Davis
Rebecca Davis

Elara Vance is a financial analyst with over a decade of experience in global markets, specializing in emerging economies and sustainable investments.

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