Within his newly released autobiography, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits that turbulent period during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, he selected that unorthodox academic Yanis Varoufakis as the finance minister largely due to the latter's worldwide fame along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, truthfully, more of a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief had a personal motives that involved promoting his books as well as experimenting with his own economic models on the nation instead of genuinely fighting for the country's economic stability.
Tsipras wrote that those talks to avoid bankruptcy became “not only a way of achieving improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came dangerously close to leaving the single currency area.
On the line was both the country's future but also the severe austerity measures required in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
That summer, those punitive conditions were put to a popular referendum, an action that threw Europe into further existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras was forced but to reject its outcome then negotiate a bailout package with foreign lenders which proved to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency and distributing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author asserts that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and delicate management.”
Tsipras further wrote how his aggressive approach made him more and more alone among peers, put Greece at risk, and helped hardliners who were advocating Grexit.
This account of events has been met with anger and shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.
