In a freshly published memoir, called Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that chaotic period of Greece's debt drama.
A Controversial Choice
According to Tsipras's account, he appointed that unorthodox economist Yanis Varoufakis to be the treasury head largely because of his global profile and his “extremely attractive” skills when it came to communicator.
“In reality, he was, actually, more of a personality and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims that his finance chief possessed a personal agenda which included advancing his publications as well as experimenting with his game theories on the nation instead of genuinely fighting for the country's financial survival.
Tsipras explained that those negotiations to prevent insolvency became “not just a method of achieving improved terms for Greece. They were an experiment, a monumental chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously close to leaving the eurozone.
At stake was not only the country's future and the harsh cutbacks required in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to find funds from other sources, including an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action which plunged Europe into a deeper crisis of identity.
Although the vote was won decisively by voters who opposed austerity, the prime minister was forced but to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy that included creating a secondary currency and distributing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how his former ally had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras also wrote how his confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief in some quarters, while the former minister has maintained a deafening silence regarding these claims.
