In a freshly published memoir, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that turbulent period during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's version, he chose that unorthodox academic Yanis Varoufakis to be his finance minister largely due to his global profile along with Varoufakis's highly compelling abilities as a speaker.
“In reality, he was, truthfully, more like a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims how Varoufakis possessed his own agenda that included advancing his publications and experimenting with his own theories on the nation instead of genuinely fighting for its financial survival.
Tsipras wrote how those discussions to avoid insolvency were “not only a method to secure improved terms for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country found itself dangerously on the brink of exiting the single currency area.
On the line was not only Greece's future but also those harsh cutbacks required in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, an action which plunged the EU into further existential crisis.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras was forced but to ignore the result and negotiate a rescue deal with creditors that turned out to be even harsher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency and distributing coupons to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for an agreement demanding complex and delicate handling.”
He further wrote how his confrontational style made him more and more alone with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence on the matter.
