Within his freshly published autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's debt drama.
A Controversial Appointment
As per the ex-PM's account, he appointed the maverick academic Yanis Varoufakis as his finance minister mainly due to his global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief possessed a personal motives that included promoting Varoufakis's books as well as testing out his own game theories on the nation instead of genuinely fighting for the country's financial survival.
He explained how those talks to prevent insolvency were “not only a method of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
During rollercoaster discussions, Greece came dangerously close to exiting the eurozone.
At stake lay both Greece's future but also those severe austerity policies demanded in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the harsh conditions were subjected to a popular referendum, an action that threw the EU into a deeper existential crisis.
Even though the referendum was won decisively by voters against austerity, Tsipras was forced but to ignore the result then negotiate a bailout package from creditors which proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency as well as distributing coupons to retirees, Tsipras said he realised it was the end questioning him: “Are you serious?”
Enduring Criticism
In the memoir, the author concludes how his former ally had proved himself “unfit for a deal demanding intricate and delicate management.”
He further claimed that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This account of events has been met with anger along with shock among certain groups, while the former minister has so far kept a conspicuous quiet on the matter.
