In a newly released autobiography, named Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he revisits that turbulent era during Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras selected the unorthodox economist Yanis Varoufakis to be the treasury head mainly because of his international reputation and Varoufakis's very persuasive skills as a public orator.
“He was, in reality, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis possessed his own motives that included promoting his publications and experimenting with his own game theories on Greece instead of genuinely advocating its financial survival.
Tsipras noted how the discussions to avoid insolvency were “not just a way of achieving improved terms for the country. They became an experiment, an historic opportunity to prove the validity of his ideas.”
Critical Talks
During volatile discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake lay both the country's destiny but also those harsh austerity measures required in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, the excoriating conditions were put to a popular referendum, an action which threw the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by voters who opposed austerity, Tsipras was forced but to reject its outcome then agree to a bailout package from foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included creating a secondary currency and issuing coupons to retirees, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating Grexit.
The account of events has been met with fury and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
