In a freshly published memoir, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he examines that turbulent era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, Tsipras chose the maverick academic Yanis Varoufakis to be his treasury head mainly due to his international reputation and his “extremely attractive” abilities as a speaker.
“In reality, he was, actually, more like a star and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis had a personal agenda that involved promoting his publications and experimenting with his own economic models on Greece rather than genuinely advocating the country's financial survival.
Tsipras noted that those discussions to stave off insolvency were “not only a method of achieving a better deal for Greece. They became a test, a monumental chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself dangerously close to leaving the single currency area.
At stake lay both the country's future and the punishing austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the harsh bailout terms were subjected to a public vote, an action that plunged Europe into deeper crisis of identity.
Even though the vote was carried resoundingly by voters who opposed the cuts, the prime minister was forced but to ignore the result and agree to a bailout package with creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the man who drew publicity, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes that his former ally demonstrated himself “unsuitable for an agreement that required complex and sensitive management.”
Tsipras also claimed how his aggressive style left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for Grexit.
The account of events has provoked fury and stunned disbelief in some quarters, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
