Within his recently unveiled personal account, titled Ithaki, the former prime minister Alexis Tsipras does not hold back while he reflects on that chaotic era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, Tsipras chose the maverick academic Yanis Varoufakis as his finance minister primarily because of his international reputation along with Varoufakis's “extremely attractive” abilities when it came to speaker.
“In reality, he was, truthfully, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief possessed a personal agenda that involved promoting Varoufakis's books and testing out his theories on Greece instead of truly fighting for the country's financial survival.
He wrote that the talks to avoid insolvency were “not only a method to secure improved terms for Greece. They were a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
Critical Talks
During volatile discussions, the country came perilously close to leaving the single currency area.
On the line was not only Greece's future but also those punishing austerity policies demanded in return for financial aid from foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, those harsh conditions were put to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the vote was carried resoundingly by those against the cuts, Tsipras had little option to ignore the result then negotiate a rescue deal from foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the front pages of publications globally … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan involving creating a parallel currency and issuing coupons to pensioners, Tsipras knew that it was game over questioning him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for an agreement that required complex and delicate handling.”
He also claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, and assisted hawks who were advocating Grexit.
This retelling of events has been met with anger and shock in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.
