In a freshly published personal account, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that turbulent era during Greece's debt drama.
A Controversial Choice
As per Tsipras's recollections, Tsipras appointed the unorthodox economist Yanis Varoufakis to be the finance minister primarily due to his international reputation along with his very persuasive skills when it came to public orator.
“He was, actually, more like a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras alleges how Varoufakis possessed his own agenda that involved promoting his publications as well as testing out his economic models on the nation instead of genuinely advocating the country's financial survival.
He noted how the discussions to avoid insolvency became “not just a method of achieving a better deal for the country. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece found itself dangerously close to leaving the eurozone.
On the line was not only Greece's future and those severe austerity policies demanded in exchange for rescue loans by international creditors.
Failed Options
Attempts to find financing from other sources, including a desperate plea to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive conditions were put to a public vote, an action which threw Europe into further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised that it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes that his former ally had proved himself “unfit for a deal that required complex and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for Grexit.
This account of history has provoked fury and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
