Within his newly released memoir, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that chaotic period during Greece's debt drama.
An Unconventional Appointment
In Tsipras's version, he appointed that maverick economist Yanis Varoufakis as the treasury head primarily due to his global profile along with Varoufakis's very persuasive skills as a communicator.
“He was, actually, more of a star and less of an economist,” stated the 51-year-old.
Conflicting Agendas
The former leader alleges how his finance chief had his own agenda which involved promoting Varoufakis's publications as well as experimenting with his own theories using Greece rather than truly advocating the country's economic stability.
Tsipras explained how those negotiations to avoid bankruptcy were “not just a way of achieving a better deal for Greece. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, the country came perilously on the brink of exiting the eurozone.
At stake was both Greece's future but also those severe austerity measures demanded in return for bailout funds by international creditors.
Failed Options
Attempts to find financing elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, those excoriating conditions were put to a popular referendum, an action which threw Europe into further crisis of identity.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras was forced but to ignore the result then negotiate a bailout package with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who graced the covers of publications globally … it seemed he relished the spotlight.”
After the minister proposed a backup strategy that included creating a secondary currency and distributing coupons to retirees, Tsipras knew it was game over questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras asserts how Varoufakis had proved himself “unsuitable for a deal that required intricate and delicate handling.”
Tsipras also claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were advocating Grexit.
This account of history has been met with anger and shock in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
