Within his recently unveiled personal account, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he revisits the turbulent period of Greece's debt drama.
A Controversial Choice
According to Tsipras's account, he chose the unorthodox academic Yanis Varoufakis as his finance minister mainly due to the latter's international reputation along with Varoufakis's very persuasive skills as a communicator.
“He was, truthfully, more of a celebrity rather than an economist,” stated Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief had a personal motives which included promoting his books and experimenting with his economic models using Greece rather than genuinely advocating its financial survival.
He explained how the discussions to stave off insolvency were “not only a method to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line lay not only the country's destiny and the punishing austerity policies required in return for bailout funds by international creditors.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a public vote, a move that plunged the EU into a further crisis of identity.
Even though the referendum was won resoundingly by voters who opposed austerity, Tsipras had little option but to reject its outcome then negotiate a bailout package from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving creating a secondary currency and distributing vouchers to pensioners, Tsipras knew it was the end and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself “unfit for an agreement that required intricate and sensitive management.”
Tsipras further wrote that his confrontational approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for Grexit.
The retelling of events has provoked fury and shock in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
