In a recently unveiled memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the turbulent period during Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, he selected that unorthodox economist Yanis Varoufakis as his treasury head primarily because of his global profile along with Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more of a star rather than an economist,” stated Tsipras.
Clashing Agendas
The former leader suggests how Varoufakis had a personal agenda that included advancing his books as well as experimenting with his own game theories using the nation instead of truly fighting for the country's economic stability.
He explained that the negotiations to avoid insolvency became “not just a way to secure a better deal for Greece. They were an experiment, a monumental opportunity to prove the truth of his economic theories.”
Critical Negotiations
During rollercoaster discussions, Greece came perilously on the brink of exiting the eurozone.
On the line was not only the country's future but also the severe austerity measures demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the excoriating bailout terms were put to a public vote, a move which threw Europe into deeper existential crisis.
Although the vote was carried resoundingly by those who opposed the cuts, Tsipras had little option but to reject its outcome then negotiate a rescue deal with creditors which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes that his former ally demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
He also wrote that his aggressive style made him more and more alone among peers, put Greece at risk, and assisted hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with fury along with shock in some quarters, while the former minister has maintained a deafening silence regarding these claims.
