In a freshly published personal account, named Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on the turbulent era of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's version, he selected the maverick economist Yanis Varoufakis to be his treasury head primarily because of his international reputation and Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras alleges how Varoufakis had his own agenda that included advancing Varoufakis's books as well as experimenting with his economic models using the nation instead of truly fighting for its financial survival.
Tsipras explained how those discussions to stave off bankruptcy were “not only a method of achieving improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously on the brink of leaving the single currency area.
On the line lay both the country's destiny but also those severe austerity measures required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including a desperate plea to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, those harsh conditions were subjected to a popular referendum, a move which plunged the EU into a deeper existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras had little option but to ignore the result then negotiate a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a contingency plan that included creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, Tsipras asserts how Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras also wrote that his confrontational style made him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
This account of history has been met with fury along with shock among certain groups, while the former minister has maintained a deafening silence on the matter.
