Within his freshly published memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on that chaotic era of Greece's debt drama.
An Unconventional Choice
In the ex-PM's recollections, Tsipras chose that unorthodox economist Yanis Varoufakis as his treasury head primarily due to the latter's worldwide fame and Varoufakis's very persuasive abilities when it came to communicator.
“He was, in reality, more of a star rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that his finance chief had a personal agenda that included promoting Varoufakis's publications as well as testing out his theories on Greece rather than truly advocating the country's financial survival.
Tsipras wrote that those discussions to stave off bankruptcy were “not only a way of achieving improved terms for Greece. They were an experiment, a monumental chance to demonstrate the truth of his theories.”
Critical Negotiations
During volatile negotiations, the country found itself perilously close to leaving the eurozone.
At stake was not only the country's destiny but also the harsh austerity policies required in return for financial aid from foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action which plunged Europe into deeper existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister had little option to ignore the result then negotiate a rescue deal from foreign lenders which proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and issuing vouchers to retirees, the leader said he realised that it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
He further wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
