Within his recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he reflects on the chaotic period of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's account, he appointed the unorthodox economist Yanis Varoufakis as the treasury head largely due to his worldwide fame and his “extremely attractive” skills when it came to communicator.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests how Varoufakis possessed a personal agenda which involved advancing his publications as well as experimenting with his own economic models using Greece instead of genuinely fighting for the country's financial survival.
He noted that the talks to avoid insolvency were “not just a method of achieving improved terms for Greece. They became a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
Amid volatile discussions, Greece came perilously close to exiting the single currency area.
At stake was both the country's future and the punishing austerity measures required in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those excoriating conditions were subjected to a popular referendum, a move that threw the EU into further crisis of identity.
Even though the referendum was won decisively by voters who opposed austerity, the prime minister was forced to ignore the result and agree to a bailout package from creditors which proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, the author concludes how Varoufakis demonstrated himself “unfit for an agreement that required complex and delicate management.”
Tsipras further wrote how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating Grexit.
This account of events has been met with anger along with stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence regarding these claims.
