In a recently unveiled autobiography, called Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's debt drama.
An Unconventional Choice
In the ex-PM's recollections, Tsipras selected that unorthodox academic Yanis Varoufakis to be the finance minister primarily due to his international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“In reality, he was, actually, more like a celebrity rather than an economist,” stated Tsipras.
Conflicting Agendas
The former leader alleges that Varoufakis possessed his own agenda that involved advancing his publications as well as testing out his own game theories on Greece instead of genuinely fighting for its financial survival.
He wrote how the discussions to stave off insolvency were “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During tense negotiations, the country came perilously close to exiting the single currency area.
At stake lay both Greece's future and those severe austerity policies demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, a move that threw Europe into deeper crisis of identity.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package from creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who graced the front pages of publications the world over … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes that his former ally had proved himself “unfit for a deal demanding intricate and sensitive management.”
He also wrote that his aggressive style left him more and more alone among peers, put Greece at risk, while assisted hardliners who were advocating a Greek exit from the euro.
The account of history has provoked anger along with shock among certain groups, whereas the former minister has maintained a conspicuous quiet on the matter.
