Within his newly released memoir, called Ithaki, the ex- premier Alexis Tsipras spares no criticism while he revisits that chaotic era during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras selected that unorthodox academic Yanis Varoufakis to be the finance minister largely due to the latter's international reputation and Varoufakis's highly compelling abilities as a speaker.
“He was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims that his finance chief had a personal motives that included promoting Varoufakis's books as well as testing out his game theories on the nation rather than genuinely advocating the country's economic stability.
Tsipras explained how the discussions to prevent bankruptcy were “not just a method of achieving improved terms for Greece. They became an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid volatile negotiations, Greece found itself perilously close to leaving the single currency area.
On the line lay not only the country's future and the harsh austerity policies demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those harsh conditions were subjected to a popular referendum, a move that threw the EU into a further existential crisis.
Even though the referendum was carried decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome and agree to a rescue deal from creditors that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan that included creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes how Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
He also wrote how his aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were pushing for Grexit.
The account of history has been met with anger along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
