Within his recently unveiled autobiography, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he examines that turbulent era during Greece's debt drama.
A Controversial Choice
According to Tsipras's account, he chose that maverick economist Yanis Varoufakis to be his treasury head primarily because of his global profile along with Varoufakis's highly compelling abilities as a communicator.
“In reality, he was, truthfully, more of a star and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief possessed a personal agenda which included advancing his books as well as testing out his economic models using the nation rather than truly advocating its financial survival.
He wrote that those negotiations to prevent insolvency were “not only a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile negotiations, the country came perilously on the brink of leaving the single currency area.
At stake was not only the country's future and those severe cutbacks required in exchange for bailout funds from foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, such as an urgent plea to Russia to buy Greek bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those punitive bailout terms were subjected to a public vote, a move that threw Europe into further crisis of identity.
Even though the vote was carried resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result then negotiate a rescue deal from creditors which proved to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the covers of magazines globally … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, Tsipras knew that it was the end and asked him: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes that Varoufakis had proved himself “unfit for a deal that required complex and sensitive handling.”
Tsipras further claimed that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
This retelling of events has provoked fury and shock in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
