In a recently unveiled personal account, named Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on the chaotic era during Greece's debt drama.
A Controversial Appointment
In the ex-PM's recollections, he selected the unorthodox economist Yanis Varoufakis to be his finance minister mainly due to his international reputation along with Varoufakis's very persuasive abilities as a public orator.
“In reality, he was, in reality, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that Varoufakis possessed his own agenda which included promoting Varoufakis's publications and testing out his own economic models using Greece instead of genuinely advocating the country's economic stability.
He explained how the talks to stave off bankruptcy became “not only a method of achieving improved terms for the country. They became a test, a monumental chance to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came dangerously close to leaving the single currency area.
At stake was not only Greece's future and those severe cutbacks demanded in return for rescue loans from international creditors.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh conditions were subjected to a popular referendum, an action that plunged Europe into a deeper crisis of identity.
Although the vote was won decisively by those who opposed the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and distributing coupons to pensioners, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author asserts that his former ally had proved himself “unfit for an agreement demanding intricate and delicate handling.”
Tsipras further claimed that his confrontational style made him increasingly isolated with colleagues, endangered the country, while assisted hawks who were pushing for Grexit.
The retelling of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
