In a freshly published personal account, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Choice
According to Tsipras's account, Tsipras chose the maverick academic Yanis Varoufakis to be the treasury head largely due to his worldwide fame along with Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, actually, more like a star and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis had a personal agenda that included promoting Varoufakis's books as well as testing out his own economic models using the nation instead of truly fighting for the country's economic stability.
Tsipras wrote that the discussions to avoid insolvency were “not only a method to secure a better deal for the country. They became a test, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself perilously on the brink of leaving the single currency area.
At stake was not only the country's future but also those harsh cutbacks demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds from other sources, such as an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, those punitive bailout terms were put to a popular referendum, a move that threw the EU into deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal that required intricate and sensitive management.”
Tsipras further claimed how Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, and helped hardliners that were pushing for Grexit.
The retelling of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
