In a freshly published autobiography, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on the chaotic era of Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected the unorthodox academic Yanis Varoufakis as the finance minister largely because of his international reputation and his “extremely attractive” skills when it came to speaker.
“He was, actually, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges how his finance chief had his own agenda which included promoting Varoufakis's books and testing out his theories using the nation rather than genuinely fighting for its financial survival.
He noted that those negotiations to prevent insolvency became “not just a method to secure improved terms for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid volatile discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay both the country's future but also the severe austerity measures required in exchange for financial aid by international creditors.
Failed Options
Efforts to secure funds elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those punitive conditions were put to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Even though the vote was carried decisively by voters against the cuts, the prime minister had little option to reject its outcome and agree to a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan involving creating a secondary currency and issuing vouchers to retirees, the leader knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes how his former ally demonstrated himself to be “unfit for an agreement that required complex and sensitive handling.”
He also wrote how Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
The account of events has been met with fury along with stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
