In a newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he revisits that chaotic period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, he appointed the maverick economist Yanis Varoufakis as the treasury head primarily because of his worldwide fame and his highly compelling skills when it came to communicator.
“He was, in reality, more like a celebrity and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras alleges that Varoufakis had a personal motives which involved advancing Varoufakis's publications and experimenting with his own economic models on Greece rather than truly advocating the country's economic stability.
He wrote that those discussions to prevent bankruptcy were “not only a method of achieving improved terms for the country. They were an experiment, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
On the line was both Greece's destiny but also the punishing austerity measures required in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were put to a popular referendum, an action that threw the EU into deeper crisis of identity.
Although the vote was carried decisively by voters who opposed the cuts, the prime minister had little option but to reject its outcome then agree to a bailout package from foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency and distributing vouchers to pensioners, Tsipras knew that it was game over questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras further wrote that Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger along with shock among certain groups, whereas the former minister has maintained a deafening silence regarding these claims.
