Within his freshly published autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits that chaotic era during Greece's financial crisis.
An Unconventional Choice
In Tsipras's account, he appointed the unorthodox economist Yanis Varoufakis to be the treasury head largely due to his global profile and Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, actually, more like a star and less of an economic expert,” stated Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis possessed a personal motives that involved advancing Varoufakis's publications as well as testing out his economic models on Greece instead of genuinely fighting for the country's economic stability.
He wrote how those discussions to stave off insolvency were “not just a method of achieving a better deal for the country. They were an experiment, an historic chance to demonstrate the validity of his theories.”
High-Stakes Talks
During volatile discussions, the country found itself perilously close to leaving the eurozone.
At stake lay both the country's future and those harsh austerity measures required in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those punitive conditions were put to a popular referendum, a move that threw the EU into a deeper existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras had little option to reject its outcome then negotiate a rescue deal from creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the man who drew publicity, who graced the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy that included creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras concludes how his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
He also wrote that his confrontational style left him more and more alone among peers, endangered the country, and helped hardliners that were advocating Grexit.
This retelling of history has provoked fury along with shock in some quarters, whereas the former minister has maintained a deafening silence on the matter.
