Within his freshly published memoir, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, Tsipras selected that unorthodox academic Yanis Varoufakis as the finance minister primarily because of the latter's international reputation and his highly compelling skills when it came to communicator.
“He was, truthfully, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader claims how his finance chief possessed his own motives that included advancing Varoufakis's books as well as experimenting with his own economic models on the nation instead of truly fighting for its financial survival.
He explained that those talks to prevent insolvency were “not just a method to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the validity of his theories.”
High-Stakes Talks
Amid volatile discussions, Greece came dangerously close to leaving the single currency area.
At stake was both the country's future but also those punishing austerity policies demanded in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, the excoriating bailout terms were put to a public vote, an action which plunged the EU into a deeper crisis of identity.
Even though the vote was won resoundingly by those against the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal with creditors which turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he relished his new role.”
After the minister proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras knew that it was the end and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and delicate handling.”
He further wrote that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
The account of events has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
