Within his recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, Tsipras appointed that maverick academic Yanis Varoufakis to be the finance minister mainly because of the latter's global profile and his very persuasive abilities as a communicator.
“He was, truthfully, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis had a personal motives that involved advancing Varoufakis's publications as well as testing out his own economic models using Greece instead of genuinely advocating its economic stability.
Tsipras explained that the negotiations to prevent insolvency became “not only a method of achieving a better deal for Greece. They were an experiment, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
During volatile discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line was not only the country's destiny but also the punishing austerity measures demanded in exchange for financial aid from international creditors.
Failed Options
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, those excoriating bailout terms were subjected to a popular referendum, an action which threw Europe into further crisis of identity.
Although the referendum was won decisively by those against austerity, the prime minister was forced to ignore the result and negotiate a bailout package with foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy that included creating a secondary currency as well as distributing coupons to retirees, the leader knew that it was game over questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that Varoufakis had proved himself to be “unfit for a deal demanding complex and sensitive handling.”
Tsipras also claimed that Varoufakis's confrontational style left him more and more alone among peers, endangered the country, and helped hawks who 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 deafening silence on the matter.
