In a newly released memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's version, Tsipras chose that maverick academic Yanis Varoufakis to be his treasury head largely due to the latter's global profile along with his very persuasive skills when it came to public orator.
“In reality, he was, in reality, more like a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief had a personal agenda which involved promoting his books as well as experimenting with his game theories using Greece instead of truly advocating its financial survival.
He noted that the discussions to avoid insolvency were “not just a way of achieving improved terms for Greece. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
During tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
On the line was not only Greece's destiny and those harsh cutbacks demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were put to a popular referendum, a move which threw Europe into further crisis of identity.
Even though the vote was carried resoundingly by those who opposed austerity, Tsipras had little option to reject its outcome and negotiate a bailout package from creditors that proved to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who drew publicity, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
He also wrote how Varoufakis's confrontational style made him more and more alone with colleagues, endangered the country, while assisted hawks who were advocating Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
