In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back as he examines that turbulent era of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he appointed that unorthodox academic Yanis Varoufakis as the finance minister primarily because of his worldwide fame along with his “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more of a personality and less of an economist,” stated the 51-year-old.
Conflicting Agendas
The former leader claims that Varoufakis had a personal agenda that involved promoting Varoufakis's publications as well as experimenting with his theories using Greece instead of genuinely advocating the country's economic stability.
Tsipras explained how the negotiations to prevent bankruptcy were “not only a method to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country came perilously on the brink of leaving the single currency area.
At stake lay both the country's destiny but also those punishing austerity policies demanded in return for rescue loans by international creditors.
Failed Options
Attempts to secure funds elsewhere, such as a desperate plea to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were put to a popular referendum, a move that threw the EU into further crisis of identity.
Although the vote was carried resoundingly by voters against austerity, Tsipras was forced but to reject its outcome then negotiate a bailout package with creditors that proved to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency and distributing vouchers to pensioners, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal that required intricate and sensitive management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were advocating Grexit.
The retelling of history has provoked fury and stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.
