In a newly released autobiography, named Ithaki, the former premier Alexis Tsipras does not hold back while he revisits the chaotic era of Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, he chose that maverick economist Yanis Varoufakis to be his finance minister primarily because of the latter's global profile and Varoufakis's highly compelling abilities when it came to speaker.
“He was, truthfully, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that his finance chief had a personal motives which included advancing Varoufakis's publications and experimenting with his economic models using the nation rather than genuinely advocating its financial survival.
He wrote how those negotiations to stave off insolvency were “not just a method to secure a better deal for Greece. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During rollercoaster negotiations, the country came dangerously close to exiting the single currency area.
On the line lay both Greece's future and the severe cutbacks demanded in return for rescue loans by international creditors.
Failed Options
Efforts to find financing elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the punitive bailout terms were put to a public vote, an action which threw the EU into further crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras had little option but to reject its outcome and agree to a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
After Varoufakis proposed a backup strategy that included creating a secondary currency and issuing coupons to retirees, the leader knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts that his former ally had proved himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
He also wrote that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
The account of history has provoked fury along with shock among certain groups, whereas the former minister has so far kept a conspicuous quiet on the matter.
