In a freshly published memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that turbulent era during Greece's debt drama.
A Controversial Choice
In the ex-PM's account, Tsipras selected that maverick economist Yanis Varoufakis as the treasury head primarily because of his worldwide fame and Varoufakis's very persuasive skills as a public orator.
“He was, truthfully, more like a star and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief had his own motives which included promoting his publications and experimenting with his game theories on Greece rather than truly advocating its financial survival.
Tsipras explained how the discussions to stave off bankruptcy were “not only a way of achieving improved terms for the country. They were an experiment, a monumental opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece came dangerously on the brink of exiting the single currency area.
On the line lay not only the country's future but also the punishing austerity policies demanded in return for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a public vote, an action that plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome then negotiate a bailout package with creditors which turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency and distributing vouchers to retirees, the leader said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that his former ally had proved himself to be “unsuitable for a deal demanding complex and delicate management.”
Tsipras also claimed that his confrontational style made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
