In a newly released autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's account, he appointed the unorthodox academic Yanis Varoufakis to be the treasury head largely because of his global profile and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more of a personality rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader alleges that Varoufakis possessed a personal motives which included advancing Varoufakis's books as well as testing out his own game theories using the nation rather than genuinely fighting for the country's financial survival.
Tsipras noted how those discussions to avoid insolvency were “not just a method to secure a better deal for the country. They became a test, an historic chance to prove the validity of his theories.”
Critical Talks
During volatile negotiations, Greece came dangerously on the brink of exiting the single currency area.
At stake lay both Greece's future but also those punishing austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were put to a public vote, a move that plunged the EU into a further crisis of identity.
Even though the referendum was carried decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome then agree to a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as issuing vouchers to retirees, the leader said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal that required intricate and sensitive management.”
Tsipras further wrote how his confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This account of events has provoked anger along with shock among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
