In a recently unveiled autobiography, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that turbulent era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras chose that unorthodox academic Yanis Varoufakis as his treasury head primarily due to the latter's global profile along with Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more of a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Agendas
The former leader suggests how Varoufakis had a personal motives which involved promoting his publications as well as experimenting with his own theories using Greece instead of genuinely advocating its financial survival.
He explained that the talks to avoid insolvency were “not just a way to secure a better deal for the country. They were a test, a monumental opportunity to prove the validity of his ideas.”
Critical Negotiations
During tense discussions, the country came perilously close to leaving the single currency area.
At stake lay both the country's destiny and the punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action that threw the EU into a further crisis of identity.
Even though the referendum was won resoundingly by voters against austerity, the prime minister had little option to reject its outcome and negotiate a rescue deal with creditors which proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate handling.”
He further wrote how his confrontational style made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
The account of events has been met with fury along with shock in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
