In a freshly published autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he examines that chaotic period of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras chose the maverick economist Yanis Varoufakis to be his finance minister primarily due to the latter's worldwide fame along with Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, in reality, more like a star rather than an economist,” stated the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis had his own agenda which included promoting Varoufakis's books and testing out his own economic models on Greece instead of genuinely fighting for the country's financial survival.
Tsipras wrote that those discussions to prevent insolvency were “not only a way to secure improved terms for Greece. They became an experiment, a monumental chance to prove the validity of his theories.”
Critical Talks
During rollercoaster negotiations, the country came perilously close to exiting the single currency area.
On the line was both Greece's future but also those harsh austerity measures required in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, an action which threw the EU into deeper existential crisis.
Although the referendum was won decisively by those who opposed austerity, the prime minister had little option but to reject its outcome then agree to a rescue deal from creditors that turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, the leader knew it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras further claimed how his confrontational approach left him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
This account of events has been met with anger and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
