In a freshly published personal account, named Ithaki, the ex- leader Alexis Tsipras does not hold back as he examines the turbulent period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's account, Tsipras appointed the unorthodox economist Yanis Varoufakis as the treasury head mainly due to the latter's global profile and Varoufakis's very persuasive skills when it came to public orator.
“He was, in reality, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had a personal agenda that included advancing Varoufakis's books and testing out his own game theories on the nation rather than genuinely advocating its financial survival.
Tsipras explained that the discussions to avoid bankruptcy were “not just a method to secure a better deal for the country. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake was not only the country's future but also those severe cutbacks required in return for bailout funds by international creditors.
Failed Options
Efforts to find funds from other sources, such as a desperate appeal to Russia to buy Greek bonds, went unanswered.
Assisting Greece was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, a move which plunged the EU into deeper existential crisis.
Although the referendum was won decisively by voters against austerity, the prime minister was forced to reject its outcome then agree to a rescue deal from creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who drew publicity, who graced the covers of publications the world over … he gave the impression he relished his new role.”
After the minister outlined a backup strategy involving establishing a secondary currency and distributing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis had proved himself to be “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras further wrote how his aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
