In a newly released autobiography, named Ithaki, the ex- leader Alexis Tsipras does not hold back as he revisits the turbulent period during Greece's debt drama.
An Unconventional Appointment
As per Tsipras's account, Tsipras appointed that maverick academic Yanis Varoufakis to be the treasury head largely due to the latter's international reputation and Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, actually, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal agenda which included advancing his books as well as experimenting with his game theories using Greece instead of genuinely advocating its financial survival.
He wrote how the discussions to prevent bankruptcy became “not only a way to secure a better deal for the country. They were a test, an historic chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously close to exiting the single currency area.
On the line was not only Greece's future and those punishing cutbacks required in return for bailout funds from international creditors.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, a move which threw the EU into further crisis of identity.
Although the vote was won decisively by voters against austerity, the prime minister was forced to reject its outcome and agree to a bailout package from creditors that proved to be even harsher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Lasting Criticism
Within the book, the author asserts that his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
He also wrote that Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This account of events has been met with anger along with shock among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.
