In a newly released memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on the chaotic era during Greece's debt drama.
A Controversial Appointment
In the ex-PM's recollections, Tsipras selected the maverick academic Yanis Varoufakis as his treasury head largely because of the latter's international reputation along with Varoufakis's very persuasive abilities as a public orator.
“He was, truthfully, more of a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras claims that his finance chief had a personal agenda which involved advancing his books as well as testing out his own game theories on Greece instead of genuinely advocating the country's economic stability.
Tsipras wrote how the negotiations to prevent insolvency were “not only a method to secure a better deal for the country. They were an experiment, an historic opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile discussions, the country found itself dangerously on the brink of exiting the eurozone.
On the line was not only the country's destiny but also those severe cutbacks demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to find funds elsewhere, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, an action which plunged the EU into a deeper crisis of identity.
Even though the referendum was carried decisively by voters against austerity, Tsipras had little option but to reject its outcome and agree to a rescue deal from creditors that proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the front pages of magazines globally … it seemed he relished his new role.”
When the minister proposed a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes that his former ally had proved himself “unfit for a deal that required intricate and delicate management.”
He further claimed how Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
The account of history has provoked fury and stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
