In a freshly published memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he selected the maverick academic Yanis Varoufakis as the finance minister primarily due to his international reputation and his very persuasive abilities as a communicator.
“He was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras suggests how his finance chief had his own agenda that included promoting his publications as well as testing out his game theories using the nation rather than genuinely advocating the country's financial survival.
He explained how those talks to avoid insolvency were “not only a way to secure improved terms for Greece. They were an experiment, a monumental opportunity to prove the truth of his ideas.”
High-Stakes Talks
Amid volatile negotiations, the country came perilously on the brink of exiting the single currency area.
On the line lay not only the country's future and those punishing austerity policies required in exchange for financial aid from foreign lenders.
Failed Alternatives
Attempts to secure funds from other sources, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were put to a public vote, a move which plunged the EU into further existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister had little option but to ignore the result and agree to a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who appeared on the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan involving establishing a parallel currency and issuing coupons to retirees, the leader said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, the author concludes how his former ally demonstrated himself to be “unsuitable for an agreement demanding intricate and sensitive management.”
He further wrote that his aggressive approach made him more and more alone with colleagues, endangered the country, and helped hawks who were pushing for Grexit.
This account of history has provoked fury along with shock among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
