In a freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that chaotic period of Greece's debt drama.
An Unconventional Choice
According to Tsipras's recollections, Tsipras chose that unorthodox academic Yanis Varoufakis as his finance minister largely because of the latter's international reputation along with Varoufakis's highly compelling skills as a communicator.
“He was, in reality, more like a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras claims how Varoufakis had his own motives that included promoting Varoufakis's publications as well as experimenting with his own economic models on Greece rather than genuinely fighting for its financial survival.
He explained that the talks to avoid bankruptcy were “not just a method of achieving a better deal for the country. They became a test, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself perilously close to exiting the single currency area.
On the line lay not only Greece's future but also those severe austerity policies required in return for financial aid from international creditors.
Failed Alternatives
Attempts to find financing elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, a move which plunged Europe into a further existential crisis.
Although the vote was won decisively by those against austerity, the prime minister had little option but to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who drew publicity, who graced the front pages of publications globally … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to pensioners, the leader knew that it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate management.”
He also wrote how his confrontational style made him more and more alone among peers, endangered the country, and assisted hardliners who were pushing for Grexit.
This retelling of events has provoked fury and shock among certain groups, whereas the former minister has so far maintained a deafening silence regarding these claims.
