In a freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that chaotic era of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's version, Tsipras appointed that maverick economist Yanis Varoufakis as his treasury head primarily because of the latter's worldwide fame and Varoufakis's “extremely attractive” skills when it came to communicator.
“In reality, he was, in reality, more of a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis possessed his own motives which involved promoting Varoufakis's books as well as experimenting with his own theories on Greece instead of truly advocating the country's financial survival.
Tsipras noted how those discussions to stave off bankruptcy were “not only a way to secure a better deal for Greece. They became a test, a monumental chance to demonstrate the truth of his economic theories.”
Critical Talks
During volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake lay both the country's destiny but also those harsh cutbacks required in return for financial aid from foreign lenders.
Failed Options
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were put to a public vote, a move which threw Europe into deeper crisis of identity.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras had little option to reject its outcome and negotiate a bailout package from creditors that turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving establishing a parallel currency as well as distributing coupons to pensioners, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
Tsipras further claimed that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
