Within his freshly published personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's debt drama.
An Unconventional Appointment
As per Tsipras's recollections, he appointed that maverick economist Yanis Varoufakis as his treasury head largely because of his worldwide fame and his “extremely attractive” skills when it came to communicator.
“He was, actually, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Priorities
The former leader claims that his finance chief possessed his own agenda that included promoting his publications as well as testing out his theories on the nation instead of genuinely fighting for its financial survival.
Tsipras noted how those discussions to stave off insolvency became “not just a method of achieving a better deal for the country. They were a test, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously on the brink of exiting the single currency area.
On the line was both the country's destiny but also those severe austerity measures required in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, such as an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, those harsh bailout terms were subjected to a public vote, a move which plunged the EU into a deeper existential crisis.
Even though the vote was won resoundingly by voters against austerity, Tsipras had little option to ignore the result and agree to a rescue deal from foreign lenders which proved to be more severe.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the book, the author asserts that his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
He further wrote how his confrontational approach made him increasingly isolated among peers, endangered the country, while helped hawks who were pushing for Grexit.
The account of events has been met with fury along with shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
