In a newly released personal account, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he revisits that turbulent era during Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, Tsipras appointed that maverick academic Yanis Varoufakis as the finance minister mainly because of his worldwide fame along with his “extremely attractive” abilities when it came to speaker.
“In reality, he was, actually, more of a celebrity rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis had his own motives that involved advancing Varoufakis's publications as well as testing out his economic models using Greece instead of truly advocating its economic stability.
Tsipras explained how those negotiations to avoid bankruptcy became “not just a way to secure improved terms for Greece. They became a test, an historic chance to demonstrate the validity of his theories.”
Critical Talks
During volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
On the line lay not only Greece's destiny and the severe austerity policies required in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those harsh bailout terms were subjected to a popular referendum, an action which threw Europe into further crisis of identity.
Although the vote was won resoundingly by voters against austerity, Tsipras had little option but to ignore the result and negotiate a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was game over and asked him: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate handling.”
Tsipras also claimed that his aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for a Greek exit from the euro.
This account of events has been met with fury and shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
