In a recently unveiled memoir, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on the turbulent period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's account, he chose the unorthodox economist Yanis Varoufakis as the treasury head largely due to his worldwide fame and his “extremely attractive” abilities when it came to public orator.
“He was, actually, more of a personality rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader alleges that his finance chief had his own motives which involved promoting his publications and experimenting with his own economic models on the nation rather than genuinely advocating the country's financial survival.
He noted how those negotiations to stave off bankruptcy were “not only a method of achieving a better deal for the country. They became a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense negotiations, Greece came dangerously close to leaving the eurozone.
At stake was not only the country's future but also those severe austerity measures demanded in exchange for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the excoriating conditions were put to a popular referendum, a move which plunged Europe into a deeper crisis of identity.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras had little option to ignore the result then agree to a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a parallel currency as well as issuing coupons to pensioners, the leader knew that it was the end questioning him: “Can you be serious?”
Lasting Criticism
In the book, the author asserts how his former ally had proved himself to be “unfit for an agreement that required complex and sensitive management.”
He further wrote how his confrontational style left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
This retelling of events has been met with anger along with shock among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
