In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he examines the chaotic era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, he selected the unorthodox economist Yanis Varoufakis as his finance minister largely due to the latter's global profile along with Varoufakis's highly compelling skills as a communicator.
“He was, actually, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own agenda which included promoting Varoufakis's books as well as experimenting with his own economic models on Greece rather than truly advocating its financial survival.
Tsipras noted that those talks to prevent bankruptcy became “not just a way to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously close to exiting the single currency area.
On the line was both Greece's destiny and those harsh austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, including a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was tantamount to throwing money in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, an action that plunged the EU into a further existential crisis.
Even though the vote was carried decisively by voters against austerity, the prime minister was forced but to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes how his former ally had proved himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras further wrote that his aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hawks that were pushing for Grexit.
The account of history has been met with fury and shock among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
