Within his newly released autobiography, called Ithaki, the former premier Alexis Tsipras spares no criticism as he reflects on that chaotic era during Greece's financial crisis.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed that maverick economist Yanis Varoufakis to be his treasury head primarily because of the latter's worldwide fame and Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, in reality, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests how Varoufakis had a personal agenda which included advancing Varoufakis's books and experimenting with his game theories on Greece rather than genuinely advocating the country's financial survival.
He noted how those negotiations to stave off insolvency became “not only a way to secure improved terms for the country. They were a test, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line was both the country's future but also those severe austerity policies required in return for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those excoriating bailout terms were subjected to a popular referendum, an action which plunged Europe into further crisis of identity.
Even though the vote was won decisively by those against the cuts, the prime minister had little option to reject its outcome and agree to a rescue deal from foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy involving creating a secondary currency as well as distributing coupons to retirees, Tsipras knew it was game over and asked him: “Is this for real?”
Lasting Criticism
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
He also wrote how his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were pushing for Grexit.
This account of events has provoked anger along with shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
