Within his newly released autobiography, titled Ithaki, the former leader Alexis Tsipras does not hold back while he reflects on that chaotic period during Greece's debt drama.
A Controversial Choice
According to the ex-PM's version, he chose the unorthodox academic Yanis Varoufakis to be his treasury head mainly due to the latter's global profile and his “extremely attractive” abilities when it came to speaker.
“He was, truthfully, more of a star and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras alleges that Varoufakis possessed a personal motives which involved advancing his publications and experimenting with his theories using Greece rather than truly fighting for its financial survival.
He explained how the discussions to avoid bankruptcy became “not only a way to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece came perilously on the brink of exiting the eurozone.
On the line was not only Greece's future but also the severe austerity policies demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, those excoriating conditions were subjected to a popular referendum, an action which plunged the EU into further existential crisis.
Even though the vote was won resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal with creditors which turned out to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency as well as distributing coupons to retirees, the leader knew that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras also wrote how his aggressive style left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The account of history has been met with anger and shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
