Within his freshly published personal account, called Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on the chaotic era of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's version, he appointed that maverick economist Yanis Varoufakis to be the treasury head mainly due to the latter's international reputation and Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, actually, more of a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how his finance chief had his own agenda that involved advancing his publications as well as experimenting with his own theories on Greece rather than genuinely fighting for the country's economic stability.
He explained how the negotiations to prevent bankruptcy were “not just a way to secure improved terms for the country. They became a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
At stake lay both the country's future and the severe cutbacks demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, including a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece was tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote and Reversal
That summer, the punitive conditions were subjected to a public vote, a move that plunged Europe into a further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister was forced but to ignore the result then negotiate a bailout package with foreign lenders that proved to be even harsher.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency and distributing vouchers to retirees, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author asserts that his former ally demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
He also wrote how his confrontational approach made him more and more alone with colleagues, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
