In a freshly published personal account, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's account, Tsipras selected the unorthodox academic Yanis Varoufakis to be his finance minister largely because of his international reputation along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“In reality, he was, truthfully, more like a star rather than an economist,” stated the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief had a personal motives which included advancing his publications and experimenting with his economic models on the nation rather than truly advocating the country's financial survival.
Tsipras explained how those talks to stave off insolvency became “not just a method to secure a better deal for the country. They became a test, a monumental chance to prove the truth of his economic theories.”
Critical Talks
During rollercoaster negotiations, Greece came dangerously close to exiting the eurozone.
On the line lay both Greece's future but also those punishing austerity policies required in exchange for rescue loans from foreign lenders.
Failed Options
Efforts to find financing from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, the harsh conditions were subjected to a popular referendum, a move which threw the EU into a further existential crisis.
Although the vote was carried resoundingly by voters who opposed austerity, Tsipras was forced but to reject its outcome and agree to a bailout package from foreign lenders which turned out to be more severe.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who graced the front pages of magazines globally … it seemed he relished his new role.”
After the minister proposed a contingency plan involving creating a secondary currency and distributing coupons to retirees, Tsipras said he realised it was the end questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, the author asserts how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hawks who were advocating Grexit.
The account of events has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
