Within his freshly published memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits that chaotic period of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's version, Tsipras selected the maverick academic Yanis Varoufakis to be the treasury head mainly because of the latter's worldwide fame and his highly compelling skills as a speaker.
“He was, in reality, more of a personality rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief had his own agenda which included advancing Varoufakis's books and experimenting with his theories on the nation instead of truly advocating the country's economic stability.
He explained how the talks to prevent bankruptcy became “not only a way of achieving improved terms for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself perilously close to exiting the eurozone.
At stake lay both the country's future but also the severe cutbacks demanded in return for financial aid from international creditors.
Failed Alternatives
Efforts to find financing elsewhere, including a desperate appeal to the Kremlin to buy Greek bonds, went unanswered.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move which plunged Europe into further crisis of identity.
Even though the vote was carried decisively by voters against the cuts, the prime minister was forced to ignore the result then agree to a rescue deal from foreign lenders that proved to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the covers of publications globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a backup strategy that included creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was game over questioning him: “Is this for real?”
Lasting Criticism
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for a deal demanding intricate and delicate management.”
Tsipras also claimed how his confrontational style left him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for Grexit.
The retelling of events has provoked anger along with shock in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
