In a freshly published autobiography, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic era during Greece's financial crisis.
A Controversial Choice
In Tsipras's recollections, Tsipras appointed that unorthodox economist Yanis Varoufakis to be his finance minister mainly due to the latter's worldwide fame and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief had a personal motives which included advancing Varoufakis's publications and testing out his own economic models using the nation rather than truly advocating its financial survival.
Tsipras wrote how the negotiations to prevent bankruptcy became “not only a method to secure a better deal for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
On the line was both the country's destiny and the severe austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action that threw the EU into deeper existential crisis.
Although the vote was won decisively by voters against the cuts, the prime minister had little option to ignore the result then negotiate a bailout package with creditors which turned out to be even harsher.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency as well as issuing vouchers to pensioners, the leader knew it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, the author concludes that Varoufakis had proved himself “unfit for an agreement demanding intricate and sensitive management.”
He also wrote how Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
