In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he revisits the chaotic period of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, Tsipras chose the unorthodox academic Yanis Varoufakis to be his finance minister mainly due to his worldwide fame along with his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more like a star rather than an economist,” stated Tsipras.
Conflicting Agendas
The former leader claims how Varoufakis possessed his own agenda that involved promoting his books as well as experimenting with his game theories using the nation instead of genuinely fighting for its financial survival.
He wrote how the talks to prevent bankruptcy became “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
During volatile discussions, the country came perilously close to leaving the eurozone.
On the line lay both the country's future and those severe austerity measures required in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action which plunged the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by those against austerity, Tsipras was forced but to reject its outcome and agree to a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the man who drew media attention, who graced the covers of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included creating a secondary currency and distributing coupons to pensioners, Tsipras knew that it was the end and asked him: “Are you serious?”
Enduring Criticism
In the book, the author asserts that Varoufakis had proved himself “unfit for a deal demanding intricate and sensitive handling.”
He further wrote that his confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This account of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
