Within his recently unveiled memoir, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's version, he selected that unorthodox economist Yanis Varoufakis to be his treasury head largely because of the latter's international reputation along with his “extremely attractive” skills as a speaker.
“He was, actually, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief possessed a personal agenda which involved advancing his publications as well as experimenting with his own economic models on Greece rather than truly advocating its financial survival.
Tsipras noted how those talks to stave off insolvency were “not just a method of achieving a better deal for the country. They were an experiment, a monumental chance to prove the truth of his ideas.”
Critical Talks
During rollercoaster discussions, Greece came perilously on the brink of exiting the eurozone.
On the line lay not only the country's future but also those severe cutbacks demanded in return for bailout funds from international creditors.
Unsuccessful Options
Efforts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive conditions were subjected to a public vote, a move that threw Europe into further existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option to reject its outcome then negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who graced the front pages of magazines globally … it seemed he was enjoying his new role.”
After the minister proposed a contingency plan that included creating a parallel currency and distributing vouchers to pensioners, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unfit for a deal that required intricate and sensitive management.”
Tsipras further claimed that his confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
