In a newly released personal account, called Ithaki, the former leader Alexis Tsipras does not hold back as he examines that turbulent era of Greece's debt drama.
An Unconventional Choice
In Tsipras's version, he appointed the unorthodox economist Yanis Varoufakis as his treasury head primarily due to the latter's international reputation and Varoufakis's “extremely attractive” abilities when it came to communicator.
“In reality, he was, truthfully, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief had his own motives which included promoting Varoufakis's books as well as experimenting with his own theories using the nation instead of truly fighting for its financial survival.
He noted that the talks to avoid bankruptcy became “not only a way to secure a better deal for the country. They became a test, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile negotiations, the country found itself perilously on the brink of exiting the single currency area.
At stake lay both Greece's destiny and the harsh cutbacks demanded in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
That summer, those excoriating bailout terms were subjected to a public vote, a move that plunged the EU into a further crisis of identity.
Although the vote was won resoundingly by voters who opposed austerity, Tsipras had little option but to ignore the result then agree to a rescue deal from creditors that proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing vouchers to pensioners, the leader said he realised it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, the author asserts how Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
He also claimed how his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
