Within his recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that chaotic period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's version, Tsipras chose the maverick economist Yanis Varoufakis as the finance minister largely because of his international reputation and Varoufakis's very persuasive abilities when it came to public orator.
“He was, in reality, more of a star and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief possessed a personal motives that involved promoting his books as well as experimenting with his economic models using the nation rather than truly fighting for the country's financial survival.
He noted how those discussions to prevent bankruptcy became “not only a method of achieving improved terms for Greece. They were an experiment, a monumental opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously close to exiting the single currency area.
On the line was both Greece's future but also the severe austerity policies demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, a move that plunged the EU into further crisis of identity.
Although the referendum was carried decisively by those who opposed the cuts, Tsipras was forced to reject its outcome then negotiate a bailout package from creditors which proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a contingency plan that included creating a parallel currency as well as issuing coupons to pensioners, the leader said he realised it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, the author concludes how his former ally demonstrated himself “unfit for a deal that required complex and delicate management.”
He further wrote that Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
This account of history has been met with fury and shock among certain groups, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
