In a newly released autobiography, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he revisits that chaotic era during Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's recollections, he chose the unorthodox academic Yanis Varoufakis to be the treasury head mainly due to his global profile along with Varoufakis's very persuasive skills as a speaker.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges how Varoufakis had a personal agenda which included advancing his publications and testing out his economic models on the nation rather than genuinely advocating its financial survival.
Tsipras noted that those talks to stave off bankruptcy were “not just a way to secure improved terms for the country. They were a test, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, the country found itself perilously on the brink of leaving the eurozone.
At stake lay both the country's future but also the harsh austerity policies required in return for bailout funds by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were subjected to a public vote, a move which threw Europe into a further crisis of identity.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option to ignore the result then agree to a rescue deal from creditors that proved to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency and distributing coupons to pensioners, Tsipras knew it was game over questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself to be “unsuitable for a deal that required intricate and sensitive management.”
Tsipras also wrote how his aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
The account of events has provoked anger along with shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
