In a recently unveiled memoir, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's debt drama.
A Controversial Choice
According to Tsipras's account, Tsipras chose that unorthodox economist Yanis Varoufakis to be the treasury head mainly because of his international reputation and Varoufakis's very persuasive skills when it came to communicator.
“He was, actually, more of a personality and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief possessed his own motives which included advancing his publications and testing out his theories on the nation rather than genuinely advocating its economic stability.
Tsipras explained how the discussions to prevent bankruptcy were “not only a method of achieving a better deal for the country. They were an experiment, an historic chance to prove the validity of his economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country came dangerously close to exiting the eurozone.
At stake was not only Greece's future and the severe cutbacks required in return for financial aid by international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, including a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote Followed by U-Turn
In July 2015, those harsh conditions were subjected to a popular referendum, an action that threw the EU into a further existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras had little option but to ignore the result then agree to a rescue deal from foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes how Varoufakis had proved himself “unfit for a deal demanding intricate and sensitive handling.”
He further claimed how his aggressive approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
