In a newly released memoir, titled Ithaki, the former prime minister Alexis Tsipras does not hold back as he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Choice
In Tsipras's version, Tsipras chose the maverick academic Yanis Varoufakis as the treasury head largely because of his global profile and Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, actually, more like a personality and less of an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief possessed a personal agenda which included promoting Varoufakis's publications as well as experimenting with his game theories on Greece instead of genuinely advocating its economic stability.
Tsipras noted that those talks to stave off bankruptcy were “not only a method of achieving improved terms for Greece. They became a test, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously on the brink of leaving the single currency area.
On the line was both Greece's destiny but also those punishing austerity measures required in exchange for bailout funds by foreign lenders.
Failed Options
Attempts to secure funds elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country would be equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, a move that plunged the EU into further crisis of identity.
Even though the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced but to ignore the result and negotiate a bailout package with creditors that proved to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who drew publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying his new role.”
When the minister outlined a backup strategy that included creating a parallel currency and distributing coupons to retirees, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras also claimed that his aggressive style left him more and more alone among peers, put Greece at risk, and helped hardliners that were advocating Grexit.
This retelling of history has provoked anger along with shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
