In a recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, Tsipras appointed that maverick academic Yanis Varoufakis to be the treasury head largely because of his international reputation and his very persuasive skills when it came to communicator.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests that Varoufakis had his own motives which included promoting his books and testing out his own theories on Greece rather than truly advocating the country's economic stability.
Tsipras noted that the negotiations to prevent bankruptcy became “not just a method of achieving improved terms for Greece. They were an experiment, an historic chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During tense negotiations, the country found itself dangerously close to leaving the eurozone.
On the line was not only the country's destiny and those punishing austerity measures required in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those harsh bailout terms were put to a popular referendum, a move that plunged Europe into deeper existential crisis.
Even though the vote was carried resoundingly by those who opposed austerity, the prime minister was forced to reject its outcome then agree to a rescue deal with creditors that turned out to be even harsher.
Final Straw
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, the author asserts that Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate management.”
He also claimed that his confrontational approach made him more and more alone with colleagues, endangered the country, and helped hawks who were advocating Grexit.
The retelling of events has been met with fury and stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet on the matter.
