Within his newly released personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the turbulent period during Greece's debt drama.
A Controversial Choice
According to Tsipras's account, he chose that maverick economist Yanis Varoufakis as his treasury head primarily because of his international reputation along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, in reality, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis had a personal agenda which included advancing Varoufakis's books and experimenting with his theories using the nation rather than genuinely advocating its financial survival.
Tsipras noted that the negotiations to prevent bankruptcy were “not just a method to secure improved terms for the country. They became an experiment, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line lay both the country's future but also those punishing austerity policies demanded in exchange for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, those harsh bailout terms were put to a public vote, an action which plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by voters who opposed the cuts, the prime minister was forced but to ignore the result then agree to a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency and distributing coupons to retirees, Tsipras knew that it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding complex and delicate management.”
He also wrote that Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were pushing for Grexit.
The account of history has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
