In a freshly published personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits the turbulent era during Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's account, Tsipras appointed that unorthodox economist Yanis Varoufakis to be the treasury head primarily due to his worldwide fame and Varoufakis's very persuasive skills as a communicator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief had his own motives which included advancing Varoufakis's books as well as testing out his game theories using the nation rather than genuinely fighting for the country's financial survival.
Tsipras wrote how those talks to prevent bankruptcy were “not only a way to secure improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile discussions, the country came dangerously on the brink of exiting the single currency area.
On the line was not only the country's future but also those harsh austerity measures required in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the harsh bailout terms were subjected to a public vote, an action which plunged the EU into deeper existential crisis.
Even though the vote was won decisively by those who opposed the cuts, the prime minister was forced but to ignore the result and agree to a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan that included creating a parallel currency as well as distributing vouchers to pensioners, the leader said he realised that it was the end questioning him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes how his former ally had proved himself “unfit for an agreement that required intricate and delicate handling.”
He further wrote how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and helped hawks who were advocating Grexit.
This account of events has provoked anger along with stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
