Within his newly released memoir, named Ithaki, the ex- leader Alexis Tsipras spares no criticism as he examines the turbulent period during Greece's debt drama.
A Controversial Choice
As per Tsipras's account, Tsipras appointed the maverick economist Yanis Varoufakis to be his treasury head largely due to the latter's global profile and his very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that his finance chief had his own agenda which involved promoting Varoufakis's books and experimenting with his economic models using Greece instead of genuinely advocating the country's economic stability.
He noted how the talks to avoid insolvency were “not only a way of achieving improved terms for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
During tense negotiations, the country found itself perilously on the brink of leaving the eurozone.
On the line was both the country's destiny and those harsh austerity policies required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were put to a public vote, an action which plunged the EU into further existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option to ignore the result and agree to a bailout package from creditors that proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan involving creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, the author asserts that Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive management.”
He further claimed that Varoufakis's aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
