In a recently unveiled memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's version, Tsipras chose that maverick economist Yanis Varoufakis as his finance minister mainly because of his global profile and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, in reality, more like a star rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader claims how his finance chief had his own agenda that involved advancing his books and testing out his own economic models using Greece rather than truly fighting for its economic stability.
Tsipras noted how those discussions to prevent insolvency were “not only a method to secure a better deal for Greece. They became an experiment, a monumental opportunity to demonstrate the validity of his ideas.”
Critical Negotiations
Amid tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake lay not only Greece's future and the severe austerity measures demanded in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into further existential crisis.
Although the referendum was won resoundingly by those against austerity, Tsipras was forced to reject its outcome and agree to a bailout package from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After the minister outlined a backup strategy involving establishing a parallel currency and issuing coupons to pensioners, Tsipras knew that it was game over questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for a deal that required intricate and sensitive handling.”
He also claimed that Varoufakis's aggressive style made him more and more alone with colleagues, endangered the country, while helped hardliners who were pushing for Grexit.
The account of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
