In a newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he revisits the chaotic era during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's account, Tsipras chose that maverick economist Yanis Varoufakis to be the finance minister largely due to his international reputation and his “extremely attractive” abilities as a communicator.
“He was, actually, more of a celebrity and less of an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras claims that Varoufakis possessed a personal agenda that involved advancing his publications and testing out his own theories using Greece rather than genuinely advocating its financial survival.
He noted how the discussions to stave off insolvency were “not just a method to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay not only the country's future and those punishing austerity policies required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to secure financing from other sources, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, the harsh conditions were put to a popular referendum, a move which threw the EU into further existential crisis.
Even though the vote was won decisively by those against austerity, Tsipras was forced to reject its outcome and agree to a bailout package with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for a deal that required complex and sensitive handling.”
Tsipras also wrote how his confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
The retelling of history has provoked fury along with shock among certain groups, whereas Varoufakis has maintained a conspicuous quiet on the matter.
