Within his newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that turbulent era of Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, he appointed that unorthodox economist Yanis Varoufakis to be the treasury head mainly due to the latter's worldwide fame and his “extremely attractive” abilities when it came to speaker.
“In reality, he was, truthfully, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis had a personal agenda which included advancing his books as well as testing out his own economic models using Greece instead of genuinely fighting for its economic stability.
Tsipras noted that those talks to stave off insolvency became “not only a method of achieving improved terms for Greece. They were a test, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid rollercoaster negotiations, the country came dangerously on the brink of leaving the eurozone.
At stake was both the country's future and those severe cutbacks demanded in return for bailout funds by foreign lenders.
Failed Alternatives
Attempts to find financing from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Referendum and U-Turn
In July 2015, those harsh conditions were put to a public vote, a move which threw Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to ignore the result and negotiate a bailout package from foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Enduring Criticism
In the memoir, the author concludes how Varoufakis had proved himself to be “unfit for an agreement that required intricate and delicate handling.”
Tsipras also claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with anger along with shock in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
