In a newly released personal account, titled Ithaki, the ex- prime minister Alexis Tsipras spares no criticism as he reflects on that turbulent era during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, he selected that unorthodox economist Yanis Varoufakis as the finance minister primarily because of his international reputation along with his “extremely attractive” abilities as a communicator.
“He was, in reality, more like a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader claims how his finance chief possessed his own motives which involved promoting his publications and testing out his economic models using Greece instead of genuinely advocating its financial survival.
Tsipras explained how those discussions to prevent insolvency were “not just a method of achieving improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake lay not only Greece's future and the punishing austerity measures demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh conditions were subjected to a public vote, an action that threw the EU into deeper crisis of identity.
Although the vote was carried decisively by those against austerity, Tsipras was forced but to ignore the result then negotiate a bailout package with creditors that turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to pensioners, Tsipras knew that it was the end questioning him: “Is this for real?”
Enduring Criticism
In the memoir, the author asserts that Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras further wrote that his aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
The account of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
