In a recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism while he revisits the turbulent period of Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, Tsipras appointed the unorthodox academic Yanis Varoufakis to be the treasury head largely due to the latter's global profile along with Varoufakis's very persuasive skills as a public orator.
“He was, in reality, more like a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests how Varoufakis had his own agenda which involved promoting Varoufakis's publications and testing out his economic models on the nation instead of truly fighting for the country's economic stability.
Tsipras wrote how the negotiations to avoid insolvency were “not only a method to secure a better deal for the country. They were a test, an historic chance to demonstrate the validity of his theories.”
Critical Talks
During tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake was not only the country's destiny but also the severe cutbacks demanded in exchange for rescue loans by international creditors.
Failed Options
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
That summer, the harsh bailout terms were put to a public vote, an action that threw the EU into deeper existential crisis.
Even though the referendum was won decisively by voters against austerity, the prime minister was forced to reject its outcome and agree to a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself “unfit for an agreement that required complex and delicate handling.”
Tsipras further wrote how his confrontational approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners that were advocating Grexit.
This account of events has provoked anger and shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
