In a recently unveiled personal account, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, Tsipras selected that unorthodox economist Yanis Varoufakis as his treasury head primarily due to the latter's global profile along with Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief had his own agenda which included promoting Varoufakis's publications as well as testing out his game theories using Greece instead of truly advocating the country's financial survival.
He explained that those discussions to avoid insolvency became “not only a way of achieving improved terms for the country. They were a test, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, the country came perilously close to leaving the single currency area.
On the line lay not only Greece's future and the harsh austerity measures required in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to find funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the punitive bailout terms were put to a public vote, an action which threw Europe into a deeper existential crisis.
Although the vote was won resoundingly by voters against the cuts, Tsipras had little option but to reject its outcome and negotiate a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing coupons to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger along with shock among certain groups, while the former minister has maintained a deafening silence regarding these claims.
