In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed the unorthodox economist Yanis Varoufakis to be his treasury head largely because of his global profile along with his very persuasive skills when it came to public orator.
“In reality, he was, actually, more of a star and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief possessed a personal agenda that involved advancing his publications as well as testing out his economic models on Greece rather than truly advocating the country's economic stability.
Tsipras wrote how the negotiations to avoid bankruptcy became “not just a way to secure a better deal for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously close to leaving the single currency area.
On the line was both Greece's destiny but also those harsh austerity policies required in exchange for financial aid from international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those harsh conditions were put to a public vote, a move which threw Europe into deeper crisis of identity.
Even though the vote was carried decisively by those against austerity, the prime minister had little option but to reject its outcome then agree to a bailout package from creditors that proved to be tougher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy involving creating a parallel currency and distributing vouchers to retirees, the leader knew it was the end and asked him: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes that his former ally had proved himself “unfit for a deal demanding complex and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, and helped hawks that were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
