Within his recently unveiled autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's financial crisis.
A Controversial Choice
In the ex-PM's recollections, Tsipras chose that maverick economist Yanis Varoufakis as his treasury head mainly because of his international reputation along with his very persuasive skills when it came to communicator.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader suggests how Varoufakis had a personal agenda that included promoting his publications as well as testing out his economic models using Greece instead of truly fighting for the country's financial survival.
He noted that the talks to stave off bankruptcy became “not just a way to secure improved terms for Greece. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Talks
During tense discussions, Greece came dangerously close to leaving the single currency area.
At stake lay not only Greece's destiny and those severe austerity policies required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the punitive bailout terms were put to a popular referendum, a move that plunged the EU into deeper crisis of identity.
Even though the referendum was won decisively by those against the cuts, Tsipras was forced but to reject its outcome and negotiate a rescue deal from foreign lenders that turned out to be more severe.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted media attention, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
When the minister outlined a backup strategy that included creating a secondary currency and issuing vouchers to retirees, the leader knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself “unfit for an agreement that required intricate and delicate management.”
Tsipras also claimed that his aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This account of events has provoked anger and shock among certain groups, while the former minister has kept a conspicuous quiet regarding these claims.
