In a freshly published personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that chaotic era of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected that maverick academic Yanis Varoufakis as the finance minister mainly because of the latter's international reputation along with Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” stated the 51-year-old.
Conflicting Priorities
The former leader claims that Varoufakis possessed his own motives that involved promoting Varoufakis's books as well as experimenting with his theories on Greece rather than truly advocating the country's economic stability.
Tsipras noted that the discussions to stave off insolvency were “not only a method of achieving improved terms for the country. They became a test, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny but also the harsh austerity policies required in return for bailout funds by foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, including a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were put to a public vote, an action which plunged Europe into a further existential crisis.
Although the vote was won resoundingly by voters against the cuts, the prime minister was forced but to reject its outcome then negotiate a bailout package from creditors which turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who drew publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and distributing coupons to pensioners, the leader said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, the author concludes that his former ally had proved himself to be “unfit for an agreement demanding complex and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
This account of history has been met with fury and shock among certain groups, whereas the former minister has so far kept a deafening silence regarding these claims.
