Within his newly released autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines that chaotic era during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras appointed the unorthodox economist Yanis Varoufakis as his finance minister primarily due to his global profile and his “extremely attractive” skills when it came to communicator.
“He was, truthfully, more of a celebrity rather than an economist,” stated the 51-year-old.
Conflicting Agendas
Tsipras alleges that his finance chief had his own motives which involved promoting Varoufakis's books as well as testing out his own theories using the nation rather than truly advocating its economic stability.
He noted that the talks to stave off insolvency were “not just a way to secure improved terms for Greece. They became an experiment, a monumental chance to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the single currency area.
At stake was both Greece's destiny but also the harsh austerity measures required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, an action that threw Europe into a further existential crisis.
Although the vote was carried resoundingly by those against the cuts, Tsipras had little option to reject its outcome then agree to a rescue deal with creditors that turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency and issuing vouchers to pensioners, Tsipras knew it was the end and asked him: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes that his former ally demonstrated himself “unsuitable for a deal demanding intricate and delicate management.”
He also claimed that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
This retelling of history has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
