In a freshly published personal account, named Ithaki, the former premier Tsipras does not hold back while he reflects on that chaotic period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, he selected the maverick economist Yanis Varoufakis as the treasury head mainly due to the latter's worldwide fame along with Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras alleges that Varoufakis had a personal agenda which involved advancing Varoufakis's publications as well as experimenting with his game theories on Greece instead of genuinely advocating the country's economic stability.
He noted that the discussions to prevent insolvency were “not only a method to secure a better deal for the country. They were a test, an historic opportunity to prove the truth of his ideas.”
Critical Talks
During volatile discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line lay both Greece's destiny but also the severe austerity policies demanded in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including a desperate plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action which threw Europe into further existential crisis.
Even though the referendum was won decisively by voters against the cuts, Tsipras had little option but to reject its outcome then negotiate a bailout package with creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate handling.”
He further wrote that his confrontational style made him increasingly isolated with colleagues, endangered the country, while helped hawks who were pushing for Grexit.
The retelling of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has kept a deafening silence on the matter.
