In a recently unveiled memoir, named Ithaki, the former leader Alexis Tsipras does not hold back as he revisits that turbulent era of Greece's debt drama.
A Controversial Appointment
According to Tsipras's version, he selected the maverick academic Yanis Varoufakis to be the finance minister mainly because of his worldwide fame along with Varoufakis's highly compelling abilities when it came to public orator.
“In reality, he was, actually, more of a celebrity rather than an economist,” stated Tsipras.
Conflicting Agendas
Tsipras claims how his finance chief possessed a personal agenda that included advancing his books and experimenting with his economic models on Greece rather than genuinely advocating the country's financial survival.
Tsipras wrote that those discussions to stave off insolvency became “not just a way to secure improved terms for the country. They were an experiment, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously on the brink of exiting the eurozone.
At stake was both the country's future and those harsh austerity measures demanded in exchange for bailout funds from international creditors.
Failed Options
Efforts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, the excoriating bailout terms were subjected to a public vote, a move that plunged the EU into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras had little option but to ignore the result then agree to a rescue deal from creditors that turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the face of the talks, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan that included creating a secondary currency and distributing vouchers to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself “unfit for a deal demanding complex and sensitive handling.”
Tsipras further claimed how his confrontational style made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
The account of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
