In a freshly published personal account, titled Ithaki, the ex- leader Tsipras spares no criticism as he revisits that turbulent period during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's recollections, he selected the unorthodox economist Yanis Varoufakis as the treasury head mainly due to the latter's worldwide fame along with his “extremely attractive” skills when it came to public orator.
“He was, in reality, more like a celebrity and less of an economist,” stated Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis possessed his own agenda that included advancing his publications and testing out his own economic models using the nation instead of truly advocating the country's economic stability.
Tsipras noted how the negotiations to stave off bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, an historic chance to prove the truth of his economic theories.”
Critical Negotiations
Amid volatile discussions, the country came perilously on the brink of leaving the single currency area.
At stake was both the country's destiny and the severe cutbacks required in return for rescue loans by international creditors.
Failed Alternatives
Efforts to find funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, the excoriating bailout terms were put to a public vote, a move which threw the EU into further crisis of identity.
Although the referendum was won decisively by those who opposed the cuts, Tsipras was forced to reject its outcome and agree to a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“He was the face of negotiation, the man who drew publicity, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader knew that it was the end and asked him: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive management.”
He also wrote how his confrontational approach made him more and more alone among peers, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
The account of history has provoked fury and shock in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
