Within his newly released personal account, called Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that turbulent era of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras chose that maverick academic Yanis Varoufakis to be the treasury head mainly due to the latter's global profile along with Varoufakis's “extremely attractive” abilities as a public orator.
“He was, truthfully, more like a star and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras claims that his finance chief had his own motives which included promoting Varoufakis's publications as well as testing out his economic models on Greece rather than truly fighting for the country's financial survival.
He wrote how the discussions to prevent bankruptcy became “not just a method to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During volatile discussions, Greece came dangerously on the brink of leaving the eurozone.
On the line lay not only the country's future and those severe cutbacks demanded in return for financial aid from foreign lenders.
Failed Options
Attempts to find funds from other sources, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those excoriating bailout terms were put to a popular referendum, an action which plunged Europe into a further existential crisis.
Although the referendum was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and agree to a bailout package with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When the minister outlined a contingency plan involving creating a secondary currency as well as distributing coupons to retirees, the leader said he realised that it was the end and asked him: “Are you serious?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate management.”
He further claimed how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.
