In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras does not hold back while he revisits that chaotic era during Greece's financial crisis.
An Unconventional Appointment
In Tsipras's account, Tsipras chose the unorthodox economist Yanis Varoufakis to be his treasury head mainly due to the latter's international reputation and his highly compelling abilities as a public orator.
“In reality, he was, truthfully, more like a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras alleges that his finance chief had a personal agenda which involved promoting Varoufakis's publications as well as testing out his own theories using the nation instead of genuinely advocating its financial survival.
Tsipras noted that those talks to avoid insolvency were “not just a way to secure improved terms for the country. They were an experiment, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, the country came perilously on the brink of leaving the eurozone.
On the line lay not only Greece's future and those harsh cutbacks required in return for rescue loans from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were put to a public vote, a move that threw Europe into a further crisis of identity.
Although the vote was carried resoundingly by voters against the cuts, Tsipras had little option to reject its outcome and negotiate a rescue deal with creditors that turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew media attention, who graced the front pages of publications the world over … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included creating a secondary currency and issuing coupons to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, Tsipras asserts how his former ally had proved himself “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras also claimed that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury along with stunned disbelief among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
