In a newly released autobiography, named Ithaki, the former premier Alexis Tsipras spares no criticism while he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
In Tsipras's version, he selected that maverick academic Yanis Varoufakis to be the treasury head mainly due to the latter's worldwide fame and his highly compelling skills as a communicator.
“In reality, he was, truthfully, more of a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader claims that his finance chief had his own agenda that included promoting his books as well as testing out his economic models using Greece rather than genuinely advocating its financial survival.
Tsipras wrote that those discussions to prevent insolvency were “not just a method of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the truth of his ideas.”
Critical Talks
During rollercoaster discussions, Greece came perilously on the brink of leaving the single currency area.
On the line lay not only Greece's destiny but also those punishing austerity policies demanded in exchange for financial aid from international creditors.
Failed Options
Efforts to secure financing from other sources, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those harsh bailout terms were put to a public vote, an action which plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by voters who opposed the cuts, Tsipras had little option to reject its outcome then agree to a rescue deal from creditors which proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan involving creating a secondary currency and distributing vouchers to pensioners, the leader said he realised that it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the book, the author asserts that his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate management.”
He also wrote that Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
This account of history has been met with fury along with shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
