In a freshly published memoir, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits that chaotic period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras appointed that maverick economist Yanis Varoufakis to be his treasury head primarily due to the latter's worldwide fame and Varoufakis's very persuasive abilities as a public orator.
“He was, actually, more like a star rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader alleges that Varoufakis had his own motives that included promoting his books as well as testing out his own theories using Greece rather than genuinely advocating its economic stability.
He noted how the discussions to prevent insolvency were “not only a method of achieving improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
Amid volatile discussions, Greece came dangerously on the brink of exiting the single currency area.
On the line lay not only the country's destiny but also those punishing austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, those harsh conditions were subjected to a popular referendum, a move that plunged Europe into further existential crisis.
Although the referendum was won decisively by those against austerity, Tsipras was forced to reject its outcome then negotiate a rescue deal with creditors that proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing vouchers to retirees, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for an agreement demanding complex and sensitive handling.”
Tsipras also claimed that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for Grexit.
This account of history has been met with anger along with shock in some quarters, while the former minister has kept a deafening silence on the matter.
