In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back as he revisits that chaotic era of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's account, he appointed the unorthodox economist Yanis Varoufakis as his finance minister primarily due to the latter's international reputation and Varoufakis's highly compelling skills as a speaker.
“He was, in reality, more like a celebrity rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had a personal motives which included advancing Varoufakis's publications and experimenting with his economic models using Greece instead of genuinely advocating its financial survival.
Tsipras noted that those negotiations to prevent bankruptcy became “not only a method to secure improved terms for the country. They became an experiment, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile discussions, the country came dangerously close to leaving the eurozone.
At stake was both Greece's future but also the punishing austerity measures required in exchange for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, an action which threw Europe into deeper crisis of identity.
Although the referendum was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to pensioners, the leader knew that it was game over questioning him: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts that his former ally had proved himself to be “unfit for an agreement demanding intricate and delicate handling.”
He further claimed how his confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners who were advocating Grexit.
The account of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
