In a newly released memoir, named Ithaki, the former premier Alexis Tsipras spares no criticism while he examines the turbulent period of Greece's debt drama.
A Controversial Choice
In Tsipras's account, he selected that unorthodox academic Yanis Varoufakis as the treasury head primarily because of his global profile and his “extremely attractive” skills as a communicator.
“He was, actually, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader claims how Varoufakis possessed his own agenda that included promoting Varoufakis's books and testing out his own economic models using the nation instead of genuinely advocating its economic stability.
Tsipras noted how the negotiations to prevent insolvency became “not just a method of achieving a better deal for Greece. They became an experiment, an historic opportunity to prove the truth of his theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously close to exiting the single currency area.
At stake lay both the country's destiny but also the harsh austerity measures demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the harsh bailout terms were put to a public vote, a move which threw Europe into further crisis of identity.
Although the vote was carried resoundingly by those against austerity, the prime minister had little option but to ignore the result then negotiate a rescue deal with creditors which proved to be more severe.
Final Straw
The ex-PM revealed how 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 the world over … it seemed he was enjoying his new role.”
After the minister proposed a backup strategy involving establishing a secondary currency as well as issuing vouchers to retirees, Tsipras knew that it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for an agreement demanding intricate and sensitive management.”
He further claimed how Varoufakis's aggressive style made him more and more alone with colleagues, put Greece at risk, and helped hawks that were advocating Grexit.
This retelling of events has provoked fury along with shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
