In a freshly published personal account, called Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, he chose that maverick academic Yanis Varoufakis as his treasury head primarily due to his international reputation and Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader claims that Varoufakis had his own motives which included advancing Varoufakis's books and experimenting with his own economic models using Greece instead of truly advocating the country's financial survival.
Tsipras wrote how those discussions to prevent insolvency became “not only a way to secure improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the truth of his theories.”
Critical Negotiations
Amid volatile negotiations, the country found itself perilously on the brink of exiting the eurozone.
On the line was both Greece's future and the harsh austerity measures demanded in exchange for bailout funds by foreign lenders.
Failed Options
Attempts to find financing elsewhere, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, those punitive conditions were put to a public vote, a move which threw the EU into deeper crisis of identity.
Even though the vote was carried resoundingly by those against the cuts, the prime minister was forced but to ignore the result then agree to a rescue deal with foreign lenders which proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving establishing a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, the author asserts that Varoufakis demonstrated himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
The account of events has been met with fury and shock in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
