Within his freshly published memoir, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he examines that turbulent period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, he chose the unorthodox economist Yanis Varoufakis to be the treasury head largely because of the latter's international reputation along with 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
The former leader claims that his finance chief possessed his own agenda that included promoting his books and experimenting with his game theories on the nation instead of truly fighting for the country's financial survival.
He wrote that those discussions to prevent insolvency were “not only a way of achieving a better deal for the country. They became a test, an historic opportunity to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself perilously on the brink of exiting the eurozone.
At stake was not only Greece's destiny and the punishing austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action which threw the EU into deeper crisis of identity.
Even though the referendum was won decisively by voters against austerity, the prime minister was forced but to ignore the result and negotiate a bailout package from creditors that proved to be even harsher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a parallel currency and issuing coupons to retirees, the leader said he realised that it was the end and asked him: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts that his former ally had proved himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote how his aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This account of history has been met with anger and shock among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
