In a recently unveiled personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he revisits that chaotic era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's version, he chose the unorthodox economist Yanis Varoufakis to be his treasury head primarily because of the latter's global profile and Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, actually, more like a star rather than an economist,” recalled Tsipras.
Clashing Priorities
The former leader claims that Varoufakis possessed a personal motives which included advancing Varoufakis's books as well as testing out his theories on Greece instead of truly advocating its financial survival.
Tsipras explained how the discussions to avoid insolvency were “not only a method of achieving improved terms for Greece. They were a test, an historic opportunity to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid volatile negotiations, Greece found itself perilously close to leaving the eurozone.
On the line lay not only Greece's future but also the severe cutbacks required in exchange for rescue loans by international creditors.
Failed Options
Efforts to find funds elsewhere, such as a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, a move which threw Europe into further crisis of identity.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras was forced to reject its outcome and agree to a rescue deal with creditors which turned out to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a parallel currency and distributing vouchers to retirees, Tsipras knew that it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, the author concludes how Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also claimed that his confrontational style left him more and more alone among peers, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
