In a newly released autobiography, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he revisits the chaotic period of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's recollections, he chose the unorthodox academic Yanis Varoufakis to be his finance minister mainly due to his international reputation and his very persuasive abilities as a communicator.
“In reality, he was, in reality, more of a star rather than an economist,” wrote the 51-year-old.
Clashing Priorities
Tsipras alleges how his finance chief had his own motives that involved advancing Varoufakis's publications and experimenting with his theories on the nation rather than truly advocating the country's financial survival.
Tsipras wrote how the discussions to stave off insolvency were “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously close to leaving the eurozone.
At stake lay both the country's future and those harsh austerity policies required in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move that plunged Europe into further crisis of identity.
Although the vote was carried resoundingly by voters against austerity, the prime minister had little option to ignore the result and negotiate a rescue deal with creditors which turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency as well as distributing vouchers to pensioners, the leader knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author concludes that Varoufakis had proved himself “unfit for a deal demanding complex and sensitive management.”
Tsipras further wrote that Varoufakis's aggressive style made him more and more alone among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury and stunned disbelief among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
