In a newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, he selected the unorthodox academic Yanis Varoufakis to be his finance minister largely due to his international reputation and his very persuasive abilities when it came to speaker.
“In reality, he was, actually, more of a star and less of an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader suggests how his finance chief had a personal motives that included promoting Varoufakis's books and testing out his economic models using Greece instead of truly advocating its financial survival.
He noted that the discussions to prevent bankruptcy were “not only a method of achieving improved terms for the country. They became an experiment, an historic opportunity to prove the truth of his theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece came dangerously close to leaving the single currency area.
At stake lay both the country's future and the harsh austerity policies demanded in return for financial aid by international creditors.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, an action which plunged Europe into further existential crisis.
Although the vote was won decisively by those who opposed austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package from creditors which turned out to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a backup strategy that included creating a parallel currency and distributing vouchers to retirees, the leader said he realised it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author asserts that his former ally had proved himself to be “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras also wrote that his aggressive approach made him more and more alone with colleagues, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
This account of history has been met with fury along with shock in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
