In a freshly published memoir, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he examines that turbulent period during Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, he chose the maverick economist Yanis Varoufakis as his treasury head largely because of the latter's international reputation and Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, actually, more of a celebrity and less of an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras claims how Varoufakis had a personal motives that involved advancing Varoufakis's publications as well as experimenting with his theories on Greece rather than truly fighting for the country's financial survival.
He wrote that the discussions to avoid insolvency were “not only a method to secure a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of his ideas.”
Critical Talks
Amid rollercoaster negotiations, the country came perilously close to exiting the single currency area.
On the line was both the country's future and the punishing cutbacks demanded in exchange for financial aid from foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into a deeper crisis of identity.
Even though the vote was carried decisively by voters who opposed the cuts, Tsipras was forced but to ignore the result and negotiate a rescue deal from creditors that turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan that included establishing a secondary currency and distributing coupons to pensioners, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational approach left him increasingly isolated with colleagues, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This account of events has provoked fury along with shock in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
