In a freshly published personal account, called Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the chaotic era during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, he appointed that unorthodox academic Yanis Varoufakis to be his treasury head primarily due to the latter's international reputation and his very persuasive skills as a speaker.
“In reality, he was, truthfully, more like a personality and less of an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader alleges that his finance chief possessed a personal motives which included advancing his books as well as experimenting with his economic models on Greece instead of truly fighting for the country's economic stability.
He explained how the talks to stave off bankruptcy became “not only a way to secure a better deal for the country. They were an experiment, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Talks
During tense discussions, the country came dangerously close to leaving the single currency area.
At stake lay both Greece's destiny and the harsh austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, those excoriating bailout terms were subjected to a public vote, an action which threw Europe into a deeper crisis of identity.
Although the vote was carried decisively by those who opposed austerity, the prime minister was forced but to ignore the result then negotiate a bailout package with creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
When the minister proposed a backup strategy involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes that his former ally demonstrated himself to be “unsuitable for an agreement that required complex and delicate handling.”
He further claimed that Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
