In a newly released autobiography, called Ithaki, the former prime minister Alexis Tsipras spares no criticism as he examines the turbulent period of Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, Tsipras chose the unorthodox academic Yanis Varoufakis to be his treasury head largely due to his global profile and his highly compelling skills when it came to public orator.
“In reality, he was, in reality, more like a star rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief had his own motives that included advancing Varoufakis's books and experimenting with his own theories using the nation instead of truly advocating its economic stability.
Tsipras explained how the negotiations to avoid bankruptcy became “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During volatile negotiations, Greece found itself dangerously on the brink of exiting the eurozone.
On the line was not only Greece's destiny and those severe austerity policies required in exchange for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as a desperate appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, the harsh bailout terms were put to a popular referendum, an action that threw the EU into further existential crisis.
Although the referendum was carried decisively by those against austerity, the prime minister was forced but to ignore the result and negotiate a bailout package with foreign lenders which proved to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy involving establishing a parallel currency as well as distributing coupons to pensioners, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal that required intricate and delicate management.”
Tsipras also wrote how Varoufakis's aggressive style left him more and more alone with colleagues, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with anger along with shock among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
