In a recently unveiled memoir, called Ithaki, the former premier Alexis Tsipras does not hold back while he examines that turbulent period of Greece's financial crisis.
A Controversial Choice
In Tsipras's recollections, he selected the unorthodox academic Yanis Varoufakis as the finance minister mainly because of his worldwide fame and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, actually, more of a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
The former leader alleges that his finance chief possessed his own motives which involved advancing Varoufakis's publications and testing out his theories on the nation instead of truly advocating the country's financial survival.
Tsipras noted that those discussions to stave off bankruptcy became “not only a way of achieving a better deal for Greece. They were an experiment, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was both the country's future but also the punishing cutbacks demanded in return for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to secure funds from other sources, including an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the punitive conditions were subjected to a public vote, an action which plunged the EU into a further existential crisis.
Even though the vote was won resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome and negotiate a rescue deal from creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew it was the end and asked him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes how Varoufakis demonstrated himself “unfit for a deal demanding complex and delicate management.”
He further wrote how his confrontational style left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
