Within his recently unveiled personal account, titled Ithaki, the ex- prime minister Alexis Tsipras spares no criticism as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, he selected that unorthodox economist Yanis Varoufakis to be his treasury head primarily due to his worldwide fame along with Varoufakis's very persuasive abilities as a public orator.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief had a personal agenda which included advancing Varoufakis's publications as well as experimenting with his theories on the nation rather than genuinely fighting for the country's economic stability.
Tsipras explained how the talks to avoid bankruptcy were “not only a method to secure a better deal for Greece. They became a test, an historic opportunity to demonstrate the validity of his ideas.”
Critical Negotiations
During volatile negotiations, the country found itself dangerously close to exiting the eurozone.
At stake lay both the country's future but also the punishing austerity policies required in return for bailout funds by international creditors.
Failed Options
Efforts to secure financing from other sources, such as an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were subjected to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister had little option to reject its outcome and agree to a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When the minister outlined a backup strategy involving establishing a secondary currency and distributing vouchers to retirees, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and delicate management.”
Tsipras also claimed how Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were advocating Grexit.
The account of history has provoked anger along with shock in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
