Within his recently unveiled memoir, called Ithaki, the former prime minister Tsipras does not hold back while he reflects on the turbulent period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he appointed that unorthodox academic Yanis Varoufakis to be his finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills as a speaker.
“He was, truthfully, more of a star rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that his finance chief possessed a personal agenda which involved promoting his books and testing out his theories using Greece instead of genuinely advocating its financial survival.
Tsipras noted how the negotiations to avoid bankruptcy became “not just a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Talks
During tense negotiations, Greece came perilously close to exiting the single currency area.
At stake lay not only Greece's future but also the punishing austerity measures required in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to find funds elsewhere, including a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the punitive conditions were subjected to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Although the referendum was won resoundingly by those against the cuts, the prime minister was forced to ignore the result then agree to a bailout package with foreign lenders that turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy involving creating a parallel currency as well as distributing coupons to pensioners, the leader knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes how his former ally demonstrated himself to be “unfit for an agreement that required complex and sensitive handling.”
He further wrote how Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of history has provoked fury along with stunned disbelief in some quarters, while the former minister has maintained a deafening silence regarding these claims.
