In a freshly published autobiography, called Ithaki, the ex- premier Alexis Tsipras does not hold back as he reflects on that chaotic era of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's account, he chose the maverick academic Yanis Varoufakis to be his finance minister primarily due to the latter's international reputation and his highly compelling skills as a public orator.
“He was, actually, more like a personality rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader claims that his finance chief possessed a personal agenda that involved advancing his books and testing out his own economic models on Greece instead of genuinely fighting for its financial survival.
He noted how the negotiations to stave off insolvency became “not only a method to secure improved terms for Greece. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece came perilously on the brink of exiting the eurozone.
At stake lay not only the country's destiny but also the punishing austerity policies required in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action which plunged the EU into a further crisis of identity.
Even though the vote was carried resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result and agree to a rescue deal from creditors that proved to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew publicity, who graced the covers of magazines the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included creating a secondary currency as well as issuing vouchers to retirees, the leader said he realised it was game over and asked him: “Can you be serious?”
Enduring Rebuke
In the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He further claimed how his confrontational style made him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for Grexit.
The retelling of history has been met with fury and shock among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.
