In a newly released memoir, titled Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on the chaotic period of Greece's financial crisis.
A Controversial Choice
In Tsipras's version, Tsipras selected the unorthodox economist Yanis Varoufakis to be his treasury head largely due to his worldwide fame and his very persuasive skills when it came to speaker.
“He was, truthfully, more of a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader claims how his finance chief possessed his own motives that involved promoting Varoufakis's publications and experimenting with his theories on Greece instead of truly advocating its financial survival.
Tsipras noted how those discussions to stave off insolvency became “not only a way to secure a better deal for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously close to exiting the eurozone.
On the line was both the country's future and those severe austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive bailout terms were subjected to a public vote, a move that threw the EU into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against austerity, Tsipras had little option but to ignore the result and negotiate a bailout package from creditors that proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who drew publicity, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan involving creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras further wrote how his confrontational approach made him more and more alone among peers, put Greece at risk, while assisted hardliners who were advocating a Greek exit from the euro.
The account of history has provoked fury and shock in some quarters, while Varoufakis has kept a deafening silence on the matter.
