In a newly released memoir, titled Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he revisits that chaotic period of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's account, Tsipras selected that maverick economist Yanis Varoufakis as the treasury head mainly due to the latter's worldwide fame along with Varoufakis's highly compelling skills as a communicator.
“He was, truthfully, more of a personality rather than an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis had a personal agenda that included promoting his books and testing out his own theories using Greece instead of truly fighting for the country's economic stability.
Tsipras noted that the negotiations to prevent bankruptcy were “not only a way of achieving a better deal for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line was not only the country's future and the punishing austerity policies required in return for bailout funds from international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum and U-Turn
That summer, the punitive conditions were put to a public vote, a move which threw the EU into a further existential crisis.
Although the vote was won resoundingly by those who opposed austerity, the prime minister was forced to reject its outcome and agree to a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency and issuing vouchers to retirees, the leader knew that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras also wrote that his confrontational approach left him increasingly isolated among peers, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
