In a freshly published personal account, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on the turbulent period during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's account, he chose that maverick economist Yanis Varoufakis to be the treasury head mainly due to the latter's worldwide fame along with his very persuasive abilities when it came to communicator.
“In reality, he was, in reality, more like a personality and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief had his own agenda which included advancing his books as well as testing out his own theories on Greece instead of genuinely advocating the country's financial survival.
Tsipras explained that the talks to avoid insolvency became “not only a method of achieving a better deal for the country. They became an experiment, an historic chance to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously close to exiting the eurozone.
At stake lay not only the country's future and the severe austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the punitive bailout terms were put to a popular referendum, a move that threw Europe into further crisis of identity.
Although the referendum was won resoundingly by those against the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis had proved himself to be “unfit for a deal demanding complex and sensitive management.”
He also claimed how his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were advocating Grexit.
The retelling of history has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has maintained a conspicuous quiet on the matter.
