Within his freshly published autobiography, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits that chaotic period during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's version, he selected the unorthodox economist Yanis Varoufakis to be his finance minister mainly because of the latter's global profile along with Varoufakis's “extremely attractive” abilities when it came to communicator.
“In reality, he was, in reality, more of a star and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief possessed his own motives which included advancing his publications and testing out his own economic models on Greece rather than truly advocating its economic stability.
He wrote that those talks to avoid bankruptcy became “not just a method of achieving improved terms for Greece. They were a test, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, Greece came perilously close to exiting the single currency area.
At stake was both the country's future but also those severe cutbacks required in return for bailout funds by international creditors.
Failed Options
Efforts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, an action which threw Europe into further crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, the prime minister had little option to reject its outcome then negotiate a bailout package with foreign lenders which proved to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a parallel currency and distributing vouchers to retirees, the leader knew that it was game over questioning him: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal that required complex and delicate management.”
Tsipras further wrote that his confrontational style left him more and more alone with colleagues, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger along with shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
