In a freshly published personal account, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on the chaotic era of Greece's financial crisis.
An Unconventional Choice
In Tsipras's recollections, he selected that maverick academic Yanis Varoufakis as his treasury head primarily because of his global profile and Varoufakis's “extremely attractive” abilities as a communicator.
“He was, actually, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims how Varoufakis had a personal agenda which included advancing Varoufakis's books and experimenting with his own game theories using Greece instead of truly advocating the country's economic stability.
Tsipras noted that those negotiations to prevent insolvency were “not only a method of achieving improved terms for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile negotiations, Greece came dangerously close to leaving the single currency area.
At stake lay both the country's destiny and the severe austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those harsh conditions were put to a public vote, an action that plunged the EU into a further crisis of identity.
Although the referendum was carried decisively by voters against austerity, the prime minister was forced but to ignore the result then agree to a rescue deal from foreign lenders which turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who attracted publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan involving establishing a parallel currency and issuing vouchers to pensioners, the leader knew it was the end questioning him: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts how Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
Tsipras further claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, while assisted hardliners that were advocating Grexit.
This retelling of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
