Within his recently unveiled autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's version, Tsipras chose that maverick academic Yanis Varoufakis as the finance minister primarily due to his worldwide fame along with his “extremely attractive” skills as a communicator.
“In reality, he was, truthfully, more like a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief possessed a personal agenda which involved advancing his publications and testing out his own theories using Greece instead of genuinely fighting for the country's economic stability.
Tsipras wrote how those negotiations to stave off bankruptcy were “not just a way of achieving a better deal for the country. They were a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense negotiations, Greece found itself perilously close to exiting the single currency area.
At stake lay not only the country's future and the harsh austerity policies required in return for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, the harsh conditions were put to a public vote, an action that plunged Europe into deeper crisis of identity.
Although the referendum was won decisively by those who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a rescue deal from foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a secondary currency and issuing vouchers to retirees, Tsipras knew that it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement that required intricate and sensitive management.”
Tsipras further claimed that his confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
