In a newly released memoir, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that turbulent era during Greece's financial crisis.
An Unconventional Choice
In Tsipras's version, he selected the unorthodox economist Yanis Varoufakis to be his finance minister largely due to the latter's international reputation and his highly compelling abilities as a communicator.
“He was, in reality, more like a star and less of an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader alleges that his finance chief possessed his own agenda which included promoting Varoufakis's publications as well as testing out his own economic models on the nation rather than genuinely fighting for its financial survival.
Tsipras wrote how the negotiations to avoid bankruptcy became “not only a way of achieving improved terms for the country. They were an experiment, a monumental chance to prove the validity of his ideas.”
Critical Negotiations
During tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
At stake was both Greece's future but also those punishing austerity policies demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds elsewhere, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Referendum and Reversal
That summer, the harsh conditions were subjected to a popular referendum, a move that threw Europe into further existential crisis.
Although the referendum was carried decisively by those who opposed austerity, the prime minister was forced to ignore the result and negotiate a bailout package from creditors which proved to be more severe.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself “unsuitable for a deal demanding intricate and sensitive management.”
He further wrote how Varoufakis's confrontational style left him more and more alone among peers, put Greece at risk, while helped hawks who were advocating Grexit.
This retelling of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
