In a recently unveiled autobiography, called Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that chaotic period of Greece's debt drama.
A Controversial Choice
According to Tsipras's version, Tsipras chose the maverick academic Yanis Varoufakis to be his finance minister largely due to his worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, in reality, more like a star rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges how Varoufakis possessed a personal agenda which involved advancing his publications as well as testing out his own theories using Greece instead of genuinely fighting for the country's financial survival.
He wrote that the negotiations to prevent insolvency became “not only a method of achieving improved terms for the country. They were an experiment, an historic chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid tense discussions, the country came dangerously close to leaving the single currency area.
At stake was both the country's future and those punishing austerity measures required in exchange for financial aid from foreign lenders.
Failed Options
Attempts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the harsh conditions were put to a popular referendum, a move that threw the EU into further existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option to reject its outcome then agree to a rescue deal with creditors which proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image 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 his new role.”
After the minister proposed a backup strategy involving establishing a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was the end and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts that Varoufakis demonstrated himself “unfit for an agreement demanding complex and sensitive management.”
Tsipras also wrote that his aggressive style left him increasingly isolated with colleagues, endangered the country, and helped hawks who were pushing for Grexit.
This account of history has been met with anger and stunned disbelief among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
