In a freshly published personal account, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's recollections, he appointed the maverick academic Yanis Varoufakis to be his finance minister largely due to the latter's global profile and his “extremely attractive” skills when it came to communicator.
“He was, truthfully, more of a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed a personal motives which involved advancing Varoufakis's books as well as experimenting with his economic models using Greece instead of truly advocating the country's economic stability.
Tsipras wrote how the discussions to prevent insolvency were “not only a way of achieving a better deal for Greece. They became a test, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece found itself perilously close to leaving the single currency area.
On the line lay not only Greece's future but also those harsh austerity policies demanded in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, a move which plunged the EU into a deeper crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, the prime minister had little option to ignore the result then negotiate a rescue deal with creditors which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency and distributing vouchers to pensioners, Tsipras knew that it was the end and asked him: “Can you be serious?”
Enduring Rebuke
In the book, the author asserts that his former ally had proved himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras further wrote that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for Grexit.
The retelling of history has provoked anger and stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
