Ex-PM Tsipras States Varoufakis Was ‘Unfit’ as Greece's Finance Minister Amid Debt Crisis

Within his newly released autobiography, called Ithaki, the former premier Tsipras does not hold back while he revisits the turbulent era during Greece's financial crisis.

An Unconventional Choice

In the ex-PM's version, Tsipras chose that unorthodox economist Yanis Varoufakis as his treasury head largely due to the latter's international reputation and Varoufakis's very persuasive skills as a speaker.

“He was, actually, more like a personality and less of an economic expert,” wrote the 51-year-old.

Conflicting Agendas

The former leader alleges that his finance chief had a personal agenda which involved promoting his publications and experimenting with his economic models on Greece rather than truly fighting for the country's economic stability.

He noted that the talks to avoid insolvency were “not only a way to secure a better deal for the country. They were a test, a monumental opportunity to prove the truth of his economic theories.”

High-Stakes Negotiations

Amid volatile discussions, Greece came dangerously close to exiting the single currency area.

At stake was not only Greece's destiny but also the harsh cutbacks demanded in return for financial aid by foreign lenders.

Unsuccessful Options

Efforts to find financing elsewhere, including an urgent plea to the Kremlin to buy Greek bonds, went unanswered.

Assisting Greece was equivalent to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.

Public Vote Followed by Reversal

In July 2015, those harsh bailout terms were subjected to a public vote, a move that threw Europe into a deeper crisis of identity.

Even though the vote was carried resoundingly by those against the cuts, Tsipras had little option to reject its outcome and negotiate a bailout package with creditors that turned out to be tougher.

Final Straw

The ex-PM claimed how he began to doubt his finance minister relatively soon.

“He was the public image of the talks, the figure who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”

When Varoufakis outlined a backup strategy that included creating a secondary currency and distributing vouchers to pensioners, Tsipras knew it was the end and asked him: “Can you be serious?”

Lasting Criticism

Within the memoir, Tsipras asserts how Varoufakis demonstrated himself “unfit for an agreement that required complex and delicate handling.”

Tsipras further wrote how Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating Grexit.

The account 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.