In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism as he revisits that chaotic period of Greece's debt drama.
An Unconventional Choice
In Tsipras's account, he chose the maverick academic Yanis Varoufakis to be the finance minister primarily due to his international reputation along with his highly compelling skills when it came to public orator.
“In reality, he was, truthfully, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief had a personal motives that included advancing his books and experimenting with his game theories using the nation instead of truly fighting for the country's financial survival.
He noted how those discussions to avoid bankruptcy were “not only a method to secure improved terms for Greece. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During tense negotiations, Greece found itself dangerously close to exiting the single currency area.
On the line lay not only the country's destiny but also the harsh austerity measures demanded in exchange for bailout funds by foreign lenders.
Failed Options
Efforts to find financing elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the excoriating bailout terms were subjected to a public vote, an action which threw Europe into a further crisis of identity.
Even though the referendum was carried decisively by voters against austerity, Tsipras had little option to ignore the result and agree to a bailout package with foreign lenders which turned out to be even harsher.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the man who drew media attention, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency and distributing vouchers to pensioners, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for a deal demanding intricate and delicate management.”
He further wrote that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were advocating Grexit.
The account of history has provoked fury and shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
