Within his freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he revisits the chaotic period during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's version, he chose the unorthodox economist Yanis Varoufakis to be his treasury head largely due to the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more of a star rather than an economist,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed his own motives which involved advancing Varoufakis's books as well as experimenting with his own economic models on the nation rather than truly advocating its financial survival.
He noted how those discussions to avoid insolvency were “not only a method to secure improved terms for Greece. They became a test, an historic chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously on the brink of leaving the single currency area.
On the line lay both the country's destiny but also the punishing austerity measures required in return for bailout funds from international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, an action which plunged Europe into a further crisis of identity.
Although the referendum was carried decisively by voters who opposed the cuts, the prime minister was forced but to ignore the result and negotiate a bailout package from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning him: “Can you be serious?”
Lasting Rebuke
Within the memoir, the author concludes that Varoufakis demonstrated himself “unfit for a deal that required complex and sensitive handling.”
Tsipras also wrote how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were pushing for Grexit.
This retelling of events has been met with fury and shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
