In a newly released personal account, titled Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he examines that turbulent era of Greece's debt drama.
An Unconventional Choice
As per Tsipras's account, Tsipras selected that maverick economist Yanis Varoufakis to be the finance minister mainly due to his global profile and Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader suggests that his finance chief possessed a personal motives which involved advancing his books and testing out his game theories on Greece rather than truly advocating the country's economic stability.
He noted that those talks to avoid insolvency became “not only a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, the country found itself perilously close to exiting the single currency area.
On the line lay not only Greece's future and those harsh austerity measures demanded in return for financial aid by international creditors.
Failed Options
Attempts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were put to a popular referendum, an action which threw the EU into further existential crisis.
Although the vote was carried resoundingly by those against the cuts, the prime minister was forced but to ignore the result and agree to a bailout package with foreign lenders that turned out to be tougher.
Final Straw
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew publicity, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
After the minister proposed a backup strategy involving creating a parallel currency and issuing vouchers to retirees, Tsipras knew that it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the book, the author asserts how his former ally had proved himself “unsuitable for a deal demanding intricate and delicate management.”
He further wrote how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while assisted hawks that were advocating Grexit.
This retelling of events has provoked anger along with shock among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
