In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he revisits that chaotic period during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's account, he chose the unorthodox academic Yanis Varoufakis as the finance minister mainly due to his global profile along with his “extremely attractive” abilities when it came to public orator.
“He was, actually, more like a star and less of an economist,” wrote Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis had a personal agenda that included promoting his publications as well as testing out his own economic models on Greece rather than genuinely fighting for its financial survival.
He noted that the discussions to avoid insolvency were “not only a method of achieving a better deal for the country. They were a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece came perilously close to exiting the eurozone.
At stake lay both Greece's destiny and the severe austerity policies demanded in return for financial aid from international creditors.
Failed Options
Efforts to find financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive conditions were subjected to a public vote, a move that plunged the EU into further existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, Tsipras had little option but to reject its outcome and negotiate a bailout package from creditors that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted media attention, who appeared on the covers of publications the world over … it seemed he relished his new role.”
After the minister proposed a backup strategy involving establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras also wrote that Varoufakis's confrontational approach made him more and more alone with colleagues, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has provoked fury and shock among certain groups, while the former minister has so far maintained a deafening silence on the matter.
