Within his newly released personal account, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on that chaotic era during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras appointed that maverick economist Yanis Varoufakis as his finance minister largely because of the latter's worldwide fame along with his highly compelling skills as a communicator.
“He was, actually, more of a star and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief had a personal agenda which involved advancing his books as well as testing out his theories on Greece rather than genuinely fighting for its economic stability.
Tsipras explained that those negotiations to avoid insolvency became “not only a way to secure a better deal for Greece. They were a test, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously close to leaving the single currency area.
On the line was both Greece's destiny but also those severe cutbacks demanded in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those harsh conditions were put to a popular referendum, a move which threw Europe into a further crisis of identity.
Even though the vote was carried resoundingly by voters against the cuts, Tsipras was forced to ignore the result and negotiate a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing vouchers to retirees, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate management.”
He also claimed that Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
This retelling of events has been met with fury along with shock among certain groups, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
