Within his newly released memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the chaotic period during Greece's financial crisis.
An Unconventional Choice
In the ex-PM's recollections, Tsipras appointed the maverick economist Yanis Varoufakis to be the finance minister mainly because of his global profile and his “extremely attractive” abilities as a communicator.
“He was, truthfully, more like a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief possessed his own motives which involved promoting his books as well as testing out his theories using the nation rather than truly advocating its economic stability.
Tsipras wrote how the talks to avoid bankruptcy became “not only a way to secure improved terms for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Talks
During tense negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line lay both the country's destiny and the punishing cutbacks demanded in exchange for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, such as a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the excoriating conditions were subjected to a popular referendum, a move which plunged the EU into a deeper crisis of identity.
Even though the vote was won decisively by voters who opposed the cuts, the prime minister had little option to ignore the result then agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving establishing a secondary currency and distributing coupons to pensioners, Tsipras said he realised it was game over questioning him: “Is this for real?”
Enduring Criticism
Within the book, the author asserts how his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
Tsipras further claimed that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The account of events has been met with fury along with shock among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
