In a freshly published memoir, named Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits that chaotic era of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's version, he selected that maverick academic Yanis Varoufakis as the finance minister primarily due to his worldwide fame and Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, in reality, more of a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis possessed a personal motives which included promoting his books as well as experimenting with his economic models on Greece rather than truly advocating its economic stability.
Tsipras explained that the negotiations to stave off bankruptcy became “not only a way of achieving improved terms for the country. They were an experiment, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself perilously close to leaving the eurozone.
On the line lay both Greece's future and those punishing cutbacks demanded in return for rescue loans by international creditors.
Failed Options
Efforts to secure funds 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 in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum and U-Turn
That summer, the excoriating conditions were put to a popular referendum, an action which plunged the EU into a deeper existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister was forced but to reject its outcome then negotiate a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal that required complex and sensitive management.”
He also claimed how his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
