In a recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that turbulent period during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, he chose that maverick economist Yanis Varoufakis to be the finance minister largely because of the latter's worldwide fame along with his “extremely attractive” skills when it came to speaker.
“He was, truthfully, more like a star and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that his finance chief had his own agenda that involved advancing Varoufakis's books and testing out his own theories using the nation rather than truly fighting for its economic stability.
He noted how the negotiations to stave off insolvency became “not just a method to secure a better deal for Greece. They were a test, a monumental chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake was not only Greece's destiny and those harsh cutbacks required in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were subjected to a public vote, a move that plunged the EU into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters against the cuts, the prime minister was forced but to reject its outcome and agree to a bailout package with creditors which turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the man who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a contingency plan involving creating a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was game over and asked him: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras also wrote how Varoufakis's aggressive approach left him more and more alone among peers, endangered the country, and assisted hardliners that were advocating Grexit.
This account of history has provoked fury and stunned disbelief in some quarters, while the former minister has kept a deafening silence regarding these claims.
