In a newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he examines the turbulent period of Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, Tsipras appointed the unorthodox economist Yanis Varoufakis to be his treasury head mainly due to the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more like a celebrity and less of an economist,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed his own motives which included advancing his books and experimenting with his economic models using the nation rather than genuinely fighting for its financial survival.
Tsipras wrote that the discussions to prevent bankruptcy became “not just a way of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
On the line was both Greece's destiny and those punishing austerity policies demanded in return for bailout funds by foreign lenders.
Failed Options
Attempts to find funds from other sources, including a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those excoriating conditions were subjected to a public vote, an action that threw the EU into deeper crisis of identity.
Although the referendum was carried resoundingly by those who opposed austerity, the prime minister was forced to ignore the result and agree to a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who drew publicity, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included creating a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was game over and asked him: “Are you serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive management.”
Tsipras further claimed how Varoufakis's confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This account of history has provoked anger and shock among certain groups, whereas the former minister has maintained a deafening silence on the matter.
