In a newly released autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on the chaotic period of Greece's economic turmoil.
A Controversial Choice
In Tsipras's account, he selected that maverick economist Yanis Varoufakis as the finance minister largely because of his worldwide fame and his “extremely attractive” skills as a public orator.
“In reality, he was, actually, more like a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had a personal agenda which included advancing Varoufakis's publications and testing out his own economic models using the nation instead of genuinely fighting for the country's financial survival.
Tsipras explained that those talks to prevent bankruptcy were “not only a method to secure a better deal for Greece. They became an experiment, an historic chance to prove the validity of Varoufakis's economic theories.”
Critical Talks
Amid volatile discussions, Greece found itself dangerously close to exiting the single currency area.
On the line lay both the country's future but also the severe cutbacks demanded in exchange for financial aid by foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the harsh bailout terms were put to a popular referendum, a move which threw Europe into a deeper crisis of identity.
Although the referendum was carried resoundingly by those who opposed austerity, Tsipras was forced but to ignore the result then agree to a rescue deal with creditors that proved to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who drew media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a parallel currency and distributing coupons to retirees, the leader knew that it was the end and asked him: “Is this for real?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
This account of events has been met with fury along with shock among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
