In a recently unveiled personal account, named Ithaki, the former prime minister Alexis Tsipras spares no criticism as he examines that turbulent period of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's account, he selected the maverick academic Yanis Varoufakis as the finance minister largely because of his international reputation and Varoufakis's “extremely attractive” skills when it came to communicator.
“In reality, he was, actually, more of a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief had a personal motives which involved advancing Varoufakis's books and testing out his own economic models on the nation rather than truly advocating its economic stability.
Tsipras wrote how those negotiations to stave off insolvency were “not only a way to secure improved terms for the country. They were an experiment, a monumental chance to prove the validity of his economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line was both Greece's future but also those harsh austerity policies demanded in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those excoriating conditions were subjected to a public vote, a move which plunged the EU into further existential crisis.
Although the vote was won decisively by those who opposed the cuts, the prime minister had little option to reject its outcome then negotiate a bailout package with creditors which proved to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, the leader knew that it was game over and asked him: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive handling.”
Tsipras also claimed how his confrontational approach made him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of events has been met with fury along with stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
