In a recently unveiled memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the turbulent era of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's account, he selected that maverick academic Yanis Varoufakis to be the treasury head largely because of the latter's worldwide fame and his “extremely attractive” skills when it came to communicator.
“In reality, he was, truthfully, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis had his own agenda that included promoting Varoufakis's publications as well as testing out his theories using Greece rather than genuinely advocating the country's financial survival.
He explained that the negotiations to stave off bankruptcy became “not just a way to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
During volatile discussions, the country came perilously on the brink of exiting the eurozone.
On the line lay not only Greece's future but also the severe austerity policies demanded in exchange for bailout funds by international creditors.
Failed Options
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those harsh conditions were subjected to a public vote, an action which plunged the EU into deeper crisis of identity.
Although the referendum was won decisively by those against austerity, Tsipras was forced to ignore the result then agree to a rescue deal with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who attracted publicity, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the book, the author concludes that Varoufakis demonstrated himself “unfit for a deal that required intricate and sensitive handling.”
Tsipras further wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while assisted hawks who were pushing for Grexit.
The retelling of events has been met with fury and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
