In a newly released autobiography, called Ithaki, the former premier Alexis Tsipras spares no criticism while he examines that chaotic period during Greece's debt drama.
A Controversial Choice
As per the ex-PM's account, Tsipras selected the maverick economist Yanis Varoufakis as the treasury head primarily due to his global profile along with his very persuasive abilities as a public orator.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how Varoufakis possessed a personal agenda which included promoting Varoufakis's publications and experimenting with his game theories using Greece rather than genuinely advocating the country's economic stability.
He noted how the negotiations to stave off bankruptcy were “not just a method of achieving improved terms for Greece. They were a test, an historic chance to demonstrate the truth of his theories.”
Critical Talks
During tense negotiations, Greece found itself perilously close to leaving the single currency area.
At stake was both the country's future but also the severe austerity measures demanded in exchange for financial aid by foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were put to a popular referendum, a move which threw Europe into further crisis of identity.
Although the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced but to ignore the result and agree to a rescue deal with creditors which proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author concludes that Varoufakis had proved himself “unfit for a deal demanding complex and sensitive handling.”
He also wrote how his aggressive approach left him more and more alone among peers, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
The account of events has been met with anger and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
