Within his newly released autobiography, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras appointed the unorthodox academic Yanis Varoufakis as the finance minister mainly because of the latter's global profile and his very persuasive abilities when it came to public orator.
“He was, in reality, more like a star rather than an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests how Varoufakis possessed his own motives which included advancing his books and experimenting with his theories on Greece rather than genuinely advocating the country's financial survival.
Tsipras noted that those talks to prevent bankruptcy were “not only a way to secure improved terms for the country. They became an experiment, an historic opportunity to prove the validity of his economic theories.”
Critical Negotiations
During volatile negotiations, the country came perilously on the brink of leaving the single currency area.
On the line lay both the country's future but also those punishing austerity measures required in return for rescue loans from international creditors.
Failed Options
Attempts to secure financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the vote was carried decisively by voters who opposed austerity, Tsipras was forced to reject its outcome then agree to a bailout package from foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan involving creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate handling.”
Tsipras also claimed how his aggressive approach left him more and more alone with colleagues, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
The retelling of history has provoked fury and stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
