In a recently unveiled autobiography, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's version, he chose the maverick economist Yanis Varoufakis to be his treasury head largely because of the latter's global profile and Varoufakis's very persuasive skills as a speaker.
“He was, truthfully, more of a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
The former leader suggests that Varoufakis had his own motives which involved advancing Varoufakis's publications as well as testing out his game theories using Greece rather than genuinely fighting for its financial survival.
Tsipras noted how those talks to avoid bankruptcy were “not just a way to secure improved terms for Greece. They became a test, a monumental chance to prove the validity of his ideas.”
Critical Negotiations
Amid tense negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line was not only Greece's destiny but also the severe cutbacks demanded in return for financial aid from international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the harsh conditions were put to a popular referendum, an action which threw Europe into deeper existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister had little option to ignore the result then negotiate a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan that included creating a secondary currency and issuing vouchers to pensioners, Tsipras knew it was the end questioning him: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how Varoufakis had proved himself “unsuitable for a deal demanding intricate and sensitive handling.”
He further claimed that Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating Grexit.
The account of events has been met with anger and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
