In a freshly published autobiography, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's account, Tsipras selected the unorthodox economist Yanis Varoufakis to be his finance minister primarily because of his international reputation along with his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more like a personality and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras alleges that his finance chief possessed his own motives which included advancing his publications as well as testing out his theories using the nation rather than genuinely advocating its economic stability.
He wrote that the negotiations to avoid insolvency were “not just a way to secure a better deal for Greece. They were a test, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the single currency area.
At stake lay both Greece's destiny and the harsh austerity policies demanded in return for bailout funds from international creditors.
Failed Options
Attempts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those harsh bailout terms were subjected to a public vote, a move which threw the EU into deeper existential crisis.
Although the vote was carried decisively by those against austerity, Tsipras was forced but to ignore the result then agree to a rescue deal with creditors that turned out to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a contingency plan that included establishing a secondary currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal demanding complex and delicate management.”
He also wrote how Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
This account of events has provoked anger and stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
