In a freshly published personal account, titled Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that turbulent period of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's version, Tsipras selected the maverick academic Yanis Varoufakis as his finance minister mainly due to his international reputation and Varoufakis's very persuasive abilities as a public orator.
“He was, in reality, more like a personality and less of an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis had his own motives which included advancing his books as well as experimenting with his own theories using the nation rather than truly fighting for the country's financial survival.
Tsipras noted how those talks to stave off bankruptcy became “not only a way of achieving a better deal for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During volatile negotiations, the country came dangerously close to leaving the single currency area.
On the line was both the country's destiny but also those harsh austerity policies required in return for rescue loans from foreign lenders.
Failed Options
Attempts to find financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a popular referendum, a move that plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras was forced to reject its outcome and negotiate a rescue deal with creditors that proved to be even harsher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who drew media attention, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a backup strategy that included creating a parallel currency and issuing coupons to pensioners, the leader knew it was the end questioning Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes that his former ally demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras further claimed how his aggressive approach made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a deafening silence regarding these claims.
