Within his newly released autobiography, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's debt drama.
A Controversial Appointment
In Tsipras's account, he chose that maverick academic Yanis Varoufakis to be his treasury head primarily due to his worldwide fame and his “extremely attractive” abilities when it came to communicator.
“He was, truthfully, more of a celebrity and less of an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader alleges that his finance chief possessed a personal agenda that included promoting his books and testing out his economic models on Greece rather than genuinely advocating the country's financial survival.
He explained that those negotiations to prevent insolvency became “not just a way to secure improved terms for the country. They were a test, a monumental chance to demonstrate the truth of Varoufakis's theories.”
Critical Talks
Amid tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay not only the country's future and those severe austerity measures required in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, an action which plunged the EU into further existential crisis.
Even though the vote was carried resoundingly by those who opposed the cuts, the prime minister had little option to ignore the result and negotiate a bailout package with creditors which proved to be tougher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency and issuing coupons to retirees, the leader said he realised that it was game over questioning him: “Are you serious?”
Enduring Rebuke
In the book, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and sensitive management.”
Tsipras further claimed how his confrontational approach left him more and more alone among peers, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
The retelling of history has been met with fury along with shock in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
