In a newly released memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits that chaotic period during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras selected that unorthodox academic Yanis Varoufakis as his treasury head primarily due to the latter's international reputation along with his highly compelling skills as a communicator.
“He was, truthfully, more of a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief had his own agenda which involved advancing his publications and testing out his own theories on the nation instead of genuinely advocating its financial survival.
He noted that the negotiations to avoid bankruptcy were “not only a way to secure improved terms for the country. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
Amid volatile discussions, the country came dangerously close to leaving the eurozone.
On the line lay both the country's destiny and those punishing austerity measures demanded in return for rescue loans by international creditors.
Failed Alternatives
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the harsh conditions were put to a public vote, a move that plunged the EU into a further existential crisis.
Even though the vote was carried decisively by voters against the cuts, the prime minister had little option to reject its outcome and negotiate a bailout package with creditors that proved to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and issuing coupons to pensioners, the leader knew that it was the end questioning him: “Are you serious?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and delicate management.”
He also wrote that his confrontational approach left him increasingly isolated with colleagues, endangered the country, and assisted hardliners who were pushing for Grexit.
The retelling of events has provoked fury and shock in some quarters, while Varoufakis has kept a deafening silence on the matter.
