In a recently unveiled memoir, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he examines the turbulent period during Greece's debt drama.
A Controversial Choice
In the ex-PM's account, he appointed that unorthodox academic Yanis Varoufakis to be his treasury head primarily because of the latter's worldwide fame along with Varoufakis's highly compelling skills as a speaker.
“In reality, he was, actually, more like a personality rather than an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief had his own agenda that involved promoting Varoufakis's publications and testing out his economic models on the nation rather than truly fighting for the country's economic stability.
He explained that those negotiations to stave off bankruptcy became “not only a method of achieving improved terms for Greece. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During tense discussions, Greece found itself perilously close to exiting the eurozone.
On the line was both the country's future and the punishing austerity measures demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive conditions were put to a popular referendum, a move which threw Europe into a deeper crisis of identity.
Although the vote was won decisively by those against austerity, the prime minister was forced but to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised 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 “unsuitable for an agreement that required intricate and delicate management.”
He further wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.
