In a newly released memoir, titled Ithaki, the former prime minister Alexis Tsipras does not hold back as he examines that chaotic period of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, Tsipras appointed that unorthodox economist Yanis Varoufakis to be his finance minister primarily because of the latter's worldwide fame and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more like a star and less of an economist,” stated Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis had a personal motives which included advancing his publications and testing out his game theories using Greece rather than truly advocating the country's financial survival.
He wrote that those discussions to stave off bankruptcy became “not just a method of achieving a better deal for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously on the brink of leaving the single currency area.
On the line was not only the country's destiny but also those harsh austerity policies demanded in exchange for financial aid from international creditors.
Failed Options
Attempts to find financing elsewhere, such as a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to throwing money into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action which plunged Europe into a deeper existential crisis.
Even though the vote was carried resoundingly by those against the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal from creditors that turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, the author asserts that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
He also claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, while assisted hardliners who were advocating Grexit.
This account of history has provoked anger along with stunned disbelief among certain groups, while the former minister has kept a conspicuous quiet on the matter.
