In a newly released autobiography, called Ithaki, the former leader Alexis Tsipras does not hold back as he revisits the chaotic era of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, Tsipras appointed that maverick academic Yanis Varoufakis to be his treasury head primarily due to the latter's global profile and Varoufakis's very persuasive skills as a speaker.
“He was, truthfully, more of a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis had his own motives that included promoting his books as well as testing out his own economic models on the nation instead of truly advocating the country's economic stability.
Tsipras explained how the negotiations to avoid insolvency became “not just a way of achieving a better deal for the country. They were a test, a monumental opportunity to prove the validity of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, Greece came perilously close to exiting the eurozone.
At stake was not only the country's destiny and the punishing austerity policies required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the punitive bailout terms were put to a popular referendum, an action which threw the EU into a further existential crisis.
Although the vote was won decisively by voters against the cuts, the prime minister had little option to ignore the result then agree to a rescue deal with foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and delicate handling.”
He also wrote how his confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This account of history has been met with anger and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
