In a newly released autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches as he revisits that turbulent era during Greece's debt drama.
An Unconventional Appointment
As per Tsipras's account, he chose the maverick economist Yanis Varoufakis as his treasury head mainly due to his global profile along with his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more like a star rather than an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief possessed a personal agenda which involved advancing Varoufakis's publications as well as experimenting with his economic models using the nation instead of truly fighting for its financial survival.
Tsipras noted how the negotiations to avoid bankruptcy were “not only a method to secure a better deal for Greece. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
During volatile negotiations, Greece found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's destiny but also those severe cutbacks required in return for financial aid by foreign lenders.
Failed Options
Attempts to find funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those harsh bailout terms were put to a popular referendum, an action which threw the EU into a further crisis of identity.
Although the vote was carried decisively by voters who opposed austerity, Tsipras had little option but to ignore the result then agree to a rescue deal with creditors which turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
After the minister outlined a contingency plan involving establishing a secondary currency as well as issuing coupons to pensioners, the leader said he realised it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras also claimed how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, while helped hawks who were advocating Grexit.
This retelling of events has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
