In a freshly published memoir, named Ithaki, the former leader Alexis Tsipras does not hold back while he examines that chaotic era of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, he appointed the unorthodox academic Yanis Varoufakis as the treasury head largely due to his international reputation along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, actually, more like a celebrity and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis had a personal motives that included promoting Varoufakis's publications as well as testing out his own theories on Greece rather than truly fighting for its financial survival.
Tsipras noted that those discussions to avoid insolvency became “not only a way to secure a better deal for Greece. They became a test, an historic chance to prove the validity of his economic theories.”
High-Stakes Talks
During volatile discussions, Greece came perilously close to exiting the single currency area.
On the line lay not only Greece's destiny but also those harsh cutbacks demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move that threw the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced but to reject its outcome then agree to a bailout package with foreign lenders that turned out to be tougher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy involving establishing a secondary currency as well as issuing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Are you serious?”
Lasting Criticism
In the book, Tsipras asserts how Varoufakis demonstrated himself “unfit for an agreement that required intricate and sensitive handling.”
He also claimed that his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
The retelling of history has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a deafening silence on the matter.
