In a freshly published personal account, named Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on that chaotic era during Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's account, Tsipras appointed the maverick academic Yanis Varoufakis to be his treasury head primarily because of his global profile and Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief possessed a personal motives that included promoting his publications and experimenting with his economic models using Greece rather than genuinely advocating the country's financial survival.
He noted that the talks to avoid insolvency became “not only a way to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came perilously close to exiting the single currency area.
At stake was not only the country's future but also the punishing austerity policies demanded in return for financial aid from international creditors.
Failed Alternatives
Efforts to secure funds from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount 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
In July 2015, those harsh bailout terms were subjected to a public vote, an action which threw the EU into a deeper crisis of identity.
Even though the vote was won decisively by voters who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a bailout package from creditors which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
He further claimed that Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
The account of events has provoked fury and stunned disbelief among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.
