In a recently unveiled personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he examines that chaotic period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, Tsipras selected the unorthodox economist Yanis Varoufakis as his treasury head mainly due to his global profile along with Varoufakis's very persuasive skills when it came to speaker.
“He was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Clashing Priorities
The former leader alleges that Varoufakis possessed a personal agenda that included advancing his publications as well as testing out his own economic models using the nation rather than truly advocating its financial survival.
He explained that the talks to prevent insolvency were “not just a way to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During rollercoaster negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay both Greece's destiny and those severe austerity policies demanded in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, including an urgent plea to Russia to buy Greek bonds, were rejected.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were subjected to a public vote, a move which plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced but to ignore the result and negotiate a bailout package from foreign lenders that turned out to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a contingency plan that included creating a parallel currency as well as distributing coupons to retirees, the leader knew that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, the author concludes that his former ally had proved himself “unsuitable for a deal that required intricate and sensitive handling.”
He further wrote that his confrontational approach made him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
This account of events has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has kept a deafening silence regarding these claims.
