Within his freshly published autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic period during Greece's debt drama.
A Controversial Choice
As per the ex-PM's account, Tsipras chose that unorthodox academic Yanis Varoufakis to be the finance minister mainly due to his worldwide fame and Varoufakis's “extremely attractive” skills as a communicator.
“In reality, he was, truthfully, more like a star and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests that Varoufakis possessed a personal motives which included promoting his books as well as testing out his economic models on the nation instead of genuinely advocating the country's financial survival.
He wrote that those discussions to prevent insolvency were “not only a way of achieving a better deal for Greece. They were an experiment, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile discussions, the country found itself dangerously close to leaving the single currency area.
On the line lay both Greece's future and those harsh austerity policies required in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, an action that threw the EU into a further crisis of identity.
Although the referendum was won decisively by those against austerity, Tsipras was forced to reject its outcome then agree to a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan that included creating a parallel currency and issuing coupons to retirees, the leader said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate management.”
He also wrote how his confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This account of events has been met with anger and stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.
