In a newly released autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on the chaotic period during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, Tsipras chose that maverick academic Yanis Varoufakis as the treasury head mainly due to his worldwide fame along with his “extremely attractive” skills as a communicator.
“He was, in reality, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges how his finance chief possessed his own motives that involved advancing his books as well as experimenting with his theories using Greece rather than truly advocating its economic stability.
He explained that the talks to stave off bankruptcy were “not just a method to secure improved terms for Greece. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay both the country's future and those harsh austerity measures required in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to find financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Public Vote and U-Turn
That summer, the harsh bailout terms were put to a public vote, a move that plunged Europe into further existential crisis.
Although the referendum was carried decisively by those against the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted media attention, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
He further claimed that his confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This account of history has been met with fury and stunned disbelief among certain groups, while the former minister has so far kept a conspicuous quiet on the matter.
