Within his freshly published personal account, named Ithaki, the former prime minister Alexis Tsipras spares no criticism as he reflects on that chaotic period during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, Tsipras chose that unorthodox economist Yanis Varoufakis as his treasury head primarily due to the latter's worldwide fame and Varoufakis's “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more of a star rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis had a personal agenda which included advancing his publications and experimenting with his economic models using Greece instead of truly advocating its economic stability.
He noted that those negotiations to prevent insolvency became “not just a method to secure improved terms for the country. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
Critical Talks
During volatile negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
On the line was not only the country's destiny but also those punishing austerity measures demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, a move which plunged the EU into deeper crisis of identity.
Even though the vote was carried resoundingly by those who opposed the cuts, Tsipras had little option to ignore the result and agree to a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader knew that it was the end questioning him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were advocating Grexit.
This retelling of events has been met with anger along with shock among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
