Within his newly released memoir, called Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on that turbulent period of Greece's debt drama.
A Controversial Choice
As per the ex-PM's account, Tsipras appointed the unorthodox economist Yanis Varoufakis as his treasury head largely due to the latter's global profile along with Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more of a star and less of an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges that his finance chief had his own motives that included advancing Varoufakis's books as well as testing out his own economic models on Greece instead of truly advocating its financial survival.
He wrote how those negotiations to stave off insolvency became “not just a way of achieving improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of his theories.”
High-Stakes Talks
During tense discussions, the country came dangerously on the brink of exiting the single currency area.
At stake lay both the country's future and those harsh austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating conditions were subjected to a public vote, a move which threw Europe into a further existential crisis.
Although the vote was won resoundingly by voters against the cuts, Tsipras had little option but to reject its outcome and negotiate a rescue deal from creditors that proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was the end and asked him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes that his former ally had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
Tsipras also wrote that his confrontational style made him more and more alone with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with anger along with stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
