Within his freshly published memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the chaotic period during Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's version, he appointed the maverick academic Yanis Varoufakis as the finance minister mainly due to his worldwide fame along with his highly compelling skills as a communicator.
“He was, truthfully, more of a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief had his own motives that included promoting his publications and testing out his own economic models using Greece instead of genuinely advocating its economic stability.
He noted that the talks to prevent insolvency were “not only a method to secure a better deal for Greece. They became a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country found itself dangerously close to exiting the single currency area.
At stake was both the country's destiny but also the punishing cutbacks required in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the punitive conditions were put to a public vote, a move that threw the EU into deeper crisis of identity.
Even though the vote was won decisively by voters against austerity, Tsipras was forced to reject its outcome then agree to a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the book, Tsipras concludes that his former ally had proved himself to be “unfit for a deal demanding complex and delicate handling.”
He also wrote how his confrontational approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
