In a recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that turbulent period during Greece's financial crisis.
An Unconventional Choice
In the ex-PM's version, he chose that unorthodox academic Yanis Varoufakis as his treasury head primarily because of the latter's global profile and his “extremely attractive” skills as a speaker.
“In reality, he was, actually, more like a star rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief had a personal motives that involved promoting Varoufakis's publications as well as experimenting with his own game theories on Greece rather than genuinely advocating its economic stability.
He wrote that those discussions to stave off insolvency became “not just a way of achieving improved terms for the country. They became an experiment, an historic chance to prove the validity of his ideas.”
Critical Talks
During rollercoaster negotiations, the country found itself perilously on the brink of leaving the eurozone.
At stake lay both Greece's destiny and the harsh austerity policies demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were subjected to a public vote, a move that threw the EU into further crisis of identity.
Even though the referendum was won decisively by voters against austerity, the prime minister had little option to ignore the result and agree to a bailout package from creditors that proved to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
When the minister proposed a backup strategy that included creating a parallel currency and distributing vouchers to retirees, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, the author concludes that his former ally had proved himself “unsuitable for a deal that required complex and sensitive management.”
Tsipras also wrote how his aggressive approach left him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were advocating Grexit.
The retelling of history has been met with anger along with shock among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
