Within his newly released personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines the turbulent period of Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, Tsipras appointed the unorthodox academic Yanis Varoufakis as his treasury head mainly due to the latter's international reputation and his highly compelling skills as a public orator.
“He was, actually, more like a star rather than an economic expert,” wrote Tsipras.
Conflicting Agendas
The former leader claims how Varoufakis had his own agenda that included promoting his publications and testing out his own economic models on Greece instead of genuinely fighting for the country's economic stability.
He noted how those negotiations to prevent insolvency became “not just a method to secure improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece came dangerously close to leaving the eurozone.
On the line lay not only the country's destiny and the punishing austerity measures required in exchange for financial aid by foreign lenders.
Failed Options
Efforts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Although the vote was carried decisively by those against austerity, the prime minister was forced to reject its outcome and negotiate a bailout package with creditors that turned out to be tougher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency as well as distributing coupons to retirees, Tsipras knew that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and sensitive handling.”
He also wrote that his confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating Grexit.
The retelling of events has been met with anger and shock among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
