In a freshly published personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches as he reflects on that chaotic era during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, Tsipras appointed that maverick academic Yanis Varoufakis to be his finance minister primarily because of the latter's global profile along with his “extremely attractive” skills when it came to public orator.
“He was, truthfully, more like a personality rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras suggests that Varoufakis had a personal motives which included advancing Varoufakis's books as well as testing out his own economic models on Greece instead of genuinely fighting for the country's financial survival.
Tsipras wrote how those discussions to prevent bankruptcy were “not only a method to secure improved terms for Greece. They were a test, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay both the country's future and those punishing cutbacks demanded in return for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find financing from other sources, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, those excoriating conditions were put to a popular referendum, a move which plunged the EU into a deeper crisis of identity.
Even though the vote was won decisively by voters against austerity, the prime minister had little option to reject its outcome and agree to a bailout package with creditors which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a contingency plan that included establishing a secondary currency as well as distributing vouchers to retirees, Tsipras knew that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how his former ally demonstrated himself “unsuitable for an agreement that required intricate and delicate management.”
He further wrote how his aggressive style left him more and more alone among peers, endangered the country, while helped hardliners that were pushing for Grexit.
This retelling of events has provoked anger along with shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
