Within his newly released personal account, called Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the turbulent period during Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, he appointed the unorthodox academic Yanis Varoufakis to be the treasury head mainly because of his international reputation and his highly compelling abilities as a speaker.
“In reality, he was, in reality, more of a personality rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own agenda that included promoting Varoufakis's books and testing out his own game theories using Greece rather than genuinely fighting for its financial survival.
He wrote how those negotiations to prevent bankruptcy were “not only a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to prove the validity of Varoufakis's ideas.”
Critical Talks
Amid tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was both the country's destiny and those severe austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the punitive conditions were put to a popular referendum, an action which plunged the EU into deeper crisis of identity.
Although the vote was won decisively by voters who opposed austerity, Tsipras was forced to reject its outcome and agree to a rescue deal from creditors that proved to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“He was the face of the talks, the figure who drew publicity, who graced the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised it was game over questioning him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and sensitive handling.”
Tsipras also wrote how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
The account of history has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
