Within his newly released autobiography, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he examines the turbulent era during Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's recollections, he selected that maverick economist Yanis Varoufakis to be his finance minister primarily due to the latter's global profile and his very persuasive skills as a public orator.
“He was, truthfully, more like a star and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own agenda that involved advancing Varoufakis's publications and experimenting with his own theories using Greece instead of genuinely fighting for its financial survival.
He noted that the discussions to avoid insolvency were “not just a way of achieving improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
Amid volatile discussions, the country found itself perilously close to exiting the single currency area.
At stake was not only Greece's destiny and the severe austerity measures demanded in exchange for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive conditions were put to a public vote, a move that threw the EU into further existential crisis.
Even though the vote was carried resoundingly by those against austerity, the prime minister had little option to ignore the result and negotiate a bailout package from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines globally … it seemed he relished his new role.”
After the minister outlined a backup strategy that included creating a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive management.”
Tsipras further wrote how Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
The account of events has been met with anger and shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
