Within his newly released autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period during Greece's debt drama.
A Controversial Choice
In the ex-PM's version, he appointed that maverick economist Yanis Varoufakis as the treasury head primarily due to the latter's worldwide fame along with Varoufakis's highly compelling skills as a speaker.
“He was, truthfully, more of a star rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader claims that Varoufakis had his own motives which included promoting his books as well as experimenting with his theories on Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote how those negotiations to prevent insolvency became “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously on the brink of leaving the single currency area.
At stake lay not only the country's destiny but also those punishing austerity measures demanded in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as a desperate plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, an action that threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras had little option but to ignore the result and agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency and issuing vouchers to retirees, Tsipras knew that it was game over questioning him: “Are you serious?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and delicate handling.”
He also wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, and helped hawks who were advocating Grexit.
The account of events has been met with fury along with shock among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
