Within his freshly published autobiography, called Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, he appointed the unorthodox economist Yanis Varoufakis to be the treasury head primarily because of the latter's global profile along with Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, truthfully, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges that his finance chief had a personal agenda which included advancing his publications as well as testing out his own game theories using the nation rather than genuinely fighting for the country's financial survival.
He wrote that those talks to avoid insolvency became “not just a way of achieving a better deal for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake lay both the country's destiny and the harsh austerity policies required in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote and Reversal
That summer, those punitive conditions were subjected to a public vote, a move that plunged the EU into a deeper existential crisis.
Although the vote was won decisively by voters against the cuts, the prime minister was forced but to ignore the result and negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Enduring Criticism
In the book, Tsipras asserts how his former ally had proved himself to be “unfit for a deal demanding complex and delicate management.”
He further wrote how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, while helped hardliners who were pushing for Grexit.
The retelling of events has been met with fury and stunned disbelief among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
