Within his freshly published memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the turbulent era of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, Tsipras appointed the unorthodox economist Yanis Varoufakis as his finance minister largely because of the latter's international reputation along with his very persuasive skills as a speaker.
“He was, in reality, more of a star and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis had his own motives that included advancing Varoufakis's publications and experimenting with his theories on Greece rather than truly advocating its financial survival.
Tsipras wrote how the discussions to stave off bankruptcy became “not only a way to secure a better deal for the country. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense discussions, the country came perilously close to exiting the single currency area.
On the line was not only Greece's future and those harsh austerity measures demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent appeal to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
In July 2015, those punitive bailout terms were put to a public vote, an action which plunged the EU into a further crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras had little option to reject its outcome then agree to a bailout package with foreign lenders that turned out to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
After the minister proposed a backup strategy that included creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, the author asserts how Varoufakis had proved himself to be “unfit for a deal that required complex and sensitive handling.”
He further claimed that his confrontational style left him more and more alone among peers, put Greece at risk, while helped hardliners who were pushing for Grexit.
The retelling of events has provoked fury and stunned disbelief among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
