Within his freshly published personal account, named Ithaki, the former leader Alexis Tsipras spares no criticism as he revisits that turbulent era of Greece's debt drama.
A Controversial Appointment
In Tsipras's recollections, Tsipras appointed the maverick economist Yanis Varoufakis as the finance minister largely due to the latter's worldwide fame and his “extremely attractive” skills when it came to communicator.
“In reality, he was, actually, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief had his own motives which included advancing Varoufakis's books and testing out his own theories using Greece instead of truly advocating its financial survival.
Tsipras noted how the talks to prevent insolvency were “not only a way of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake was both the country's destiny but also the severe austerity policies demanded in return for financial aid by international creditors.
Failed Options
Efforts to find funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those punitive bailout terms were put to a public vote, an action which threw Europe into deeper existential crisis.
Although the vote was carried resoundingly by those who opposed austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew publicity, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a parallel currency and distributing coupons to pensioners, the leader knew it was game over and asked him: “Can you be serious?”
Lasting Criticism
Within the book, the author asserts how his former ally had proved himself “unsuitable for a deal demanding complex and delicate management.”
He also wrote how Varoufakis's aggressive approach made him more and more alone with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The account of history has been met with anger along with stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
