In a newly released memoir, named Ithaki, the ex- premier Alexis Tsipras spares no criticism while he examines that turbulent era during Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's recollections, he chose that maverick economist Yanis Varoufakis as the finance minister largely due to his worldwide fame along with his highly compelling skills when it came to speaker.
“In reality, he was, in reality, more of a personality and less of an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests that his finance chief possessed a personal motives that included promoting Varoufakis's publications and testing out his own economic models using Greece instead of genuinely advocating the country's economic stability.
He wrote that those negotiations to stave off insolvency were “not only a way to secure improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, the country came perilously on the brink of exiting the single currency area.
At stake was both Greece's future and those harsh austerity measures demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the harsh bailout terms were put to a public vote, an action that threw Europe into further existential crisis.
Although the vote was won decisively by voters against austerity, the prime minister was forced to ignore the result then agree to a rescue deal from creditors that turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the front pages of magazines globally … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan involving establishing a secondary currency as well as distributing coupons to retirees, the leader knew that it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras also wrote that his aggressive style made him more and more alone with colleagues, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
The account of events has provoked anger along with shock among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
