In a recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he examines that turbulent era during Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he selected the maverick academic Yanis Varoufakis as the treasury head mainly due to the latter's global profile and Varoufakis's very persuasive skills as a communicator.
“He was, truthfully, more of a celebrity rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief possessed his own motives which involved advancing Varoufakis's publications as well as testing out his economic models using the nation rather than truly fighting for the country's economic stability.
He noted how the discussions to stave off bankruptcy were “not just a way to secure improved terms for the country. They were an experiment, a monumental chance to prove the validity of his economic theories.”
Critical Negotiations
Amid tense negotiations, Greece found itself perilously close to exiting the single currency area.
On the line lay not only Greece's destiny and the severe austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the harsh bailout terms were put to a popular referendum, a move that plunged the EU into further crisis of identity.
Although the vote was carried decisively by voters against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal with creditors which proved to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the covers of magazines globally … he gave the impression 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 said he realised it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, the author concludes that his former ally demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras further claimed how his confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
The retelling of events has provoked anger along with stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
