Former Prime Minister Tsipras States Yanis Varoufakis Was ‘Inappropriate’ for the role of Greek Finance Minister During Financial Meltdown

In a recently unveiled memoir, called Ithaki, the ex- leader Tsipras pulls no punches while he examines that chaotic era during Greece's financial crisis.

A Controversial Appointment

In the ex-PM's recollections, Tsipras selected that unorthodox economist Varoufakis as his treasury head primarily due to his worldwide fame and Varoufakis's very persuasive abilities as a public orator.

“In reality, he was, actually, more like a celebrity rather than an economist,” stated the 51-year-old.

Clashing Priorities

The former leader suggests how his finance chief possessed a personal motives that included advancing his books and experimenting with his own economic models on Greece rather than truly fighting for the country's economic stability.

He explained that those talks to avoid bankruptcy became “not only a way to secure improved terms for Greece. They became an experiment, an historic chance to prove the validity of his ideas.”

High-Stakes Negotiations

During volatile discussions, the country came dangerously close to leaving the single currency area.

On the line lay both Greece's future and the severe austerity policies required in exchange for bailout funds from foreign lenders.

Failed Options

Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, were rejected.

Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.

Referendum Followed by Reversal

That summer, those harsh bailout terms were subjected to a popular referendum, an action that threw the EU into further existential crisis.

Although the referendum was carried resoundingly by voters against the cuts, Tsipras had little option to reject its outcome and agree to a bailout package with creditors which proved to be tougher.

Final Straw

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

“He was the face of negotiation, the figure who drew publicity, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”

After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras knew that it was game over and asked him: “Can you be serious?”

Lasting Rebuke

Within the book, Tsipras asserts that his former ally demonstrated himself “unsuitable for an agreement demanding complex and delicate management.”

He also wrote that Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating a Greek exit from the euro.

This retelling of events has provoked fury and shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.