Former Prime Minister Alexis Tsipras Claims Varoufakis Proved ‘Unfit’ as Greek Finance Minister During Debt Crisis

In a newly released autobiography, named Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he revisits the chaotic era of Greece's debt drama.

A Controversial Choice

According to Tsipras's recollections, Tsipras chose that unorthodox economist Varoufakis as the finance minister mainly because of the latter's worldwide fame and his “extremely attractive” skills when it came to communicator.

“In reality, he was, actually, more of a personality rather than an economist,” recalled Tsipras.

Clashing Priorities

Tsipras suggests that his finance chief had a personal agenda which involved promoting his books and experimenting with his theories using Greece instead of truly advocating the country's economic stability.

Tsipras noted how those negotiations to stave off insolvency were “not only a way of achieving a better deal for the country. They were an experiment, an historic opportunity to demonstrate the validity of his theories.”

Critical Talks

Amid volatile discussions, Greece found itself perilously close to leaving the eurozone.

At stake lay not only Greece's future and those punishing austerity measures demanded in exchange for financial aid by international creditors.

Unsuccessful Alternatives

Attempts to find funds elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.

Helping the indebted country was equivalent to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.

Public Vote and Reversal

In July 2015, those harsh bailout terms were subjected to a popular referendum, a move which threw the EU into deeper existential crisis.

Even though the vote was carried resoundingly by those against austerity, Tsipras was forced but to ignore the result then agree to a rescue deal from creditors that proved to be more severe.

Final Straw

Tsipras revealed how he began to doubt Varoufakis quite early on.

“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”

When the minister proposed a backup strategy involving creating a parallel currency and issuing coupons to retirees, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”

Enduring Criticism

In the book, the author asserts that his former ally had proved himself to be “unfit for an agreement demanding intricate and delicate management.”

He also wrote that his confrontational style made him more and more alone with colleagues, put Greece at risk, while helped hardliners who were advocating Grexit.

The retelling of events has been met with anger along with stunned disbelief among certain groups, whereas Varoufakis has maintained a deafening silence regarding these claims.

Kevin Griffith
Kevin Griffith

A seasoned automotive finance specialist with over a decade of experience in UK leasing markets.