Within his freshly published memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the turbulent period during Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras chose the maverick academic Yanis Varoufakis as the finance minister largely because of his worldwide fame and his very persuasive abilities when it came to communicator.
“In reality, he was, in reality, more like a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis had a personal agenda which involved promoting Varoufakis's books and experimenting with his game theories using Greece rather than truly advocating its financial survival.
Tsipras noted how the discussions to stave off bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
During volatile negotiations, Greece found itself perilously on the brink of leaving the eurozone.
On the line lay both the country's destiny and the harsh cutbacks demanded in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move that threw the EU into further existential crisis.
Although the referendum was carried resoundingly by those against austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal from creditors that turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author concludes that his former ally had proved himself to be “unsuitable for an agreement that required intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The account of history has been met with anger and shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
