In a newly released autobiography, titled Ithaki, the former prime minister Alexis Tsipras does not hold back while he examines that chaotic period of Greece's financial crisis.
An Unconventional Appointment
In Tsipras's recollections, Tsipras chose the unorthodox economist Yanis Varoufakis as his treasury head mainly because of the latter's global profile and Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more like a celebrity and less of an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests how his finance chief possessed a personal motives which involved advancing Varoufakis's books and testing out his game theories on Greece rather than truly advocating its economic stability.
Tsipras noted how those negotiations to avoid bankruptcy became “not only a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of his theories.”
Critical Talks
Amid volatile discussions, Greece found itself dangerously close to leaving the single currency area.
At stake was both Greece's destiny but also the punishing cutbacks required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, went unanswered.
Helping Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were put to a popular referendum, a move which plunged Europe into further existential crisis.
Although the referendum was carried decisively by those against austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package with foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a parallel currency and distributing vouchers to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required complex and delicate management.”
Tsipras also claimed how Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, while helped hawks that were pushing for Grexit.
This account of events has been met with anger along with stunned disbelief among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
