In a newly released personal account, titled Ithaki, the former leader Alexis Tsipras spares no criticism as he examines that chaotic period of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, he appointed the maverick economist Yanis Varoufakis as the treasury head primarily because of the latter's worldwide fame and his highly compelling skills when it came to communicator.
“He was, actually, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that Varoufakis possessed a personal agenda which involved promoting Varoufakis's publications and testing out his own game theories on Greece rather than genuinely fighting for the country's economic stability.
He wrote how the talks to prevent insolvency became “not just a method of achieving improved terms for the country. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During rollercoaster discussions, Greece came dangerously close to leaving the single currency area.
At stake was not only Greece's future and those severe cutbacks demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Attempts to find financing from other sources, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote and U-Turn
That summer, the punitive conditions were put to a popular referendum, an action which threw Europe into further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister was forced to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the man who drew media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to pensioners, the leader said he realised it was the end questioning him: “Can you be serious?”
Lasting Criticism
Within the book, the author asserts that Varoufakis had proved himself “unfit for a deal that required complex and sensitive management.”
He further wrote that his confrontational style left him more and more alone among peers, endangered the country, and helped hardliners that were pushing for Grexit.
The account of history has provoked fury along with shock among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
