In a newly released personal account, called Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on the turbulent era during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's version, he appointed the unorthodox academic Yanis Varoufakis as his treasury head primarily because of the latter's worldwide fame along with his highly compelling skills as a communicator.
“He was, in reality, more like a star and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader claims that his finance chief had a personal agenda which included promoting Varoufakis's publications and testing out his own economic models on Greece rather than genuinely fighting for the country's financial survival.
He explained how the discussions to avoid bankruptcy became “not only a method to secure a better deal for Greece. They became a test, an historic chance to demonstrate the validity of his ideas.”
Critical Negotiations
Amid volatile negotiations, Greece came dangerously close to exiting the single currency area.
At stake lay both the country's future but also the punishing austerity policies required in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, the excoriating conditions were put to a public vote, an action which plunged Europe into a further existential crisis.
Even though the vote was won resoundingly by those who opposed the cuts, the prime minister had little option but to reject its outcome and negotiate a bailout package from creditors which turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, the leader knew it was game over questioning him: “Can you be serious?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive handling.”
Tsipras further claimed that Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and assisted hardliners who were pushing for a Greek exit from the euro.
The retelling of history has provoked fury and shock among certain groups, while the former minister has kept a conspicuous quiet regarding these claims.
