Within his newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras spares no criticism as he reflects on the turbulent era of Greece's debt drama.
A Controversial Choice
As per the ex-PM's account, he selected the maverick academic Yanis Varoufakis as the treasury head mainly because of the latter's worldwide fame and Varoufakis's highly compelling skills when it came to public orator.
“He was, in reality, more like a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief possessed his own motives which involved promoting his publications as well as experimenting with his economic models on the nation rather than truly advocating the country's financial survival.
Tsipras explained that those negotiations to prevent bankruptcy became “not just a way to secure improved terms for Greece. They became an experiment, an historic chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously on the brink of exiting the single currency area.
On the line was not only Greece's future but also the harsh cutbacks required in return for financial aid by foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, a move which plunged the EU into deeper crisis of identity.
Although the vote was won resoundingly by those who opposed austerity, the prime minister was forced to ignore the result then agree to a rescue deal with creditors that proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency and issuing coupons to retirees, Tsipras knew it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras also claimed that his aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
This account of events has been met with anger and stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet on the matter.
