In a newly released personal account, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on the turbulent era of Greece's debt drama.
A Controversial Choice
According to Tsipras's recollections, he appointed that maverick economist Yanis Varoufakis to be the treasury head largely because of his worldwide fame along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, actually, more of a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis possessed his own motives that involved advancing Varoufakis's books as well as testing out his game theories using the nation rather than genuinely fighting for the country's financial survival.
Tsipras wrote that those discussions to avoid insolvency were “not just a method to secure improved terms for Greece. They became an experiment, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During tense discussions, the country found itself dangerously close to exiting the eurozone.
On the line was not only Greece's destiny and those severe austerity policies demanded in exchange for bailout funds from foreign lenders.
Failed Options
Efforts to secure financing from other sources, including an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, an action which threw the EU into further existential crisis.
Although the vote was won decisively by voters against the cuts, the prime minister had little option to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who attracted media attention, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and sensitive management.”
He further claimed how Varoufakis's confrontational approach left him increasingly isolated with colleagues, endangered the country, while assisted hardliners that were pushing for Grexit.
This account of events has provoked fury along with stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
