In a freshly published memoir, named Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits the chaotic period during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, he appointed the unorthodox economist Yanis Varoufakis to be his treasury head primarily because of the latter's global profile and Varoufakis's very persuasive abilities when it came to speaker.
“He was, truthfully, more of a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims how his finance chief had a personal motives that included promoting his books as well as experimenting with his economic models using Greece rather than truly fighting for its economic stability.
He wrote how those talks to stave off insolvency were “not only a method to secure improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
During tense discussions, Greece came dangerously close to exiting the single currency area.
On the line was not only the country's future but also those harsh austerity measures demanded in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, including an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those excoriating bailout terms were put to a popular referendum, an action that plunged the EU into a further crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced to reject its outcome then negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate handling.”
He also claimed how Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were advocating a Greek exit from the euro.
The account of events has been met with anger and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
