In a recently unveiled personal account, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that chaotic period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's version, he chose the maverick academic Yanis Varoufakis as the finance minister largely because of the latter's international reputation along with his very persuasive skills when it came to speaker.
“In reality, he was, in reality, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief possessed his own motives which included promoting his books and testing out his own economic models on the nation rather than truly advocating its economic stability.
He wrote that those negotiations to avoid bankruptcy were “not only a method to secure a better deal for Greece. They were a test, an historic chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid volatile discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake lay not only Greece's destiny and the harsh cutbacks required in exchange for bailout funds by international creditors.
Failed Alternatives
Efforts to secure financing from other sources, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, those punitive conditions were put to a public vote, an action that threw the EU into a deeper crisis of identity.
Even though the referendum was won resoundingly by those against the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a parallel currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts how his former ally had proved himself “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras further claimed that his confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
The account of events has been met with anger along with stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
