In a freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back as he examines that turbulent era during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras selected the maverick economist Yanis Varoufakis to be his finance minister primarily because of the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, truthfully, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras suggests that his finance chief had a personal agenda which included advancing Varoufakis's books as well as experimenting with his game theories using Greece rather than genuinely fighting for its economic stability.
Tsipras noted that the talks to prevent insolvency became “not only a way to secure improved terms for Greece. They were an experiment, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came perilously on the brink of leaving the single currency area.
On the line was both the country's destiny but also those severe austerity measures demanded in return for financial aid by foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, a move which threw Europe into a further crisis of identity.
Although the referendum was carried decisively by voters against the cuts, Tsipras had little option but to reject its outcome then agree to a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included creating a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end questioning him: “Is this for real?”
Enduring Criticism
In the book, the author concludes that his former ally demonstrated himself “unfit for a deal demanding intricate and sensitive management.”
He further claimed how his confrontational style left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger along with shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
