In a newly released memoir, titled Ithaki, the former prime minister Alexis Tsipras does not hold back as he examines the turbulent era during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, he chose the maverick academic Yanis Varoufakis as his finance minister mainly because of the latter's global profile and his very persuasive skills as a speaker.
“In reality, he was, actually, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader alleges that his finance chief had a personal motives which involved promoting Varoufakis's publications as well as testing out his own economic models using Greece instead of genuinely fighting for the country's economic stability.
Tsipras explained how those negotiations to avoid insolvency were “not just a method of achieving a better deal for Greece. They became an experiment, a monumental chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country came dangerously close to leaving the eurozone.
At stake was both the country's destiny but also those punishing austerity policies required in return for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were put to a public vote, a move which plunged the EU into further crisis of identity.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras had little option to ignore the result then negotiate a bailout package from creditors that turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, the leader knew that it was game over questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that his former ally had proved himself “unsuitable for a deal that required intricate and delicate management.”
Tsipras also wrote that Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, and assisted hardliners who were advocating Grexit.
This account of history has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
