In a newly released autobiography, called Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's recollections, he chose that unorthodox economist Yanis Varoufakis to be his finance minister mainly due to the latter's international reputation along with Varoufakis's highly compelling skills as a speaker.
“He was, in reality, more of a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader suggests that his finance chief possessed his own agenda that involved advancing his publications as well as testing out his economic models using the nation instead of truly advocating the country's economic stability.
He explained that the discussions to avoid bankruptcy became “not just a way of achieving a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of his ideas.”
Critical Talks
During rollercoaster discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line lay both the country's future but also those severe austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, an action that plunged Europe into deeper existential crisis.
Even though the referendum was carried resoundingly by those against the cuts, Tsipras was forced to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and distributing coupons to pensioners, Tsipras knew that it was game over questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that his former ally demonstrated himself “unfit for an agreement that required complex and delicate handling.”
He further claimed that Varoufakis's aggressive approach made him more and more alone among peers, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
This account of history has provoked fury along with shock in some quarters, while the former minister has so far maintained a deafening silence on the matter.
