In a newly released autobiography, called Ithaki, the ex- premier Alexis Tsipras does not hold back as he examines that chaotic era of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras chose the unorthodox academic Yanis Varoufakis as his finance minister primarily because of the latter's worldwide fame along with his “extremely attractive” abilities as a speaker.
“In reality, he was, in reality, more like a star and less of an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief possessed his own motives that involved promoting Varoufakis's books as well as experimenting with his own theories using the nation instead of truly advocating its economic stability.
Tsipras noted that the negotiations to prevent bankruptcy were “not only a way to secure improved terms for Greece. They became a test, a monumental chance to prove the truth of his theories.”
High-Stakes Talks
During rollercoaster discussions, the country came perilously on the brink of leaving the single currency area.
On the line was both the country's future but also the punishing austerity measures demanded in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find financing from other sources, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those excoriating conditions were put to a public vote, a move which threw Europe into a deeper crisis of identity.
Although the vote was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome and negotiate a bailout package from foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras asserts how his former ally demonstrated himself “unfit for a deal that required intricate and sensitive handling.”
He also claimed that Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating Grexit.
This account of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
