In a freshly published autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he revisits that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, Tsipras appointed that maverick academic Yanis Varoufakis as the treasury head primarily because of the latter's worldwide fame and Varoufakis's highly compelling skills as a communicator.
“He was, in reality, more of a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief had a personal motives that included promoting Varoufakis's publications and testing out his own economic models using the nation instead of truly advocating the country's financial survival.
He noted how those talks to stave off bankruptcy were “not just a method to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile discussions, Greece came perilously on the brink of leaving the single currency area.
On the line lay both the country's future but also those punishing austerity policies demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote and U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, a move that threw the EU into further existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras had little option but to reject its outcome then negotiate a rescue deal from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to pensioners, Tsipras knew it was game over questioning him: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts how his former ally demonstrated himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras further wrote that his aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of history has been met with anger and shock among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.
