In a recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on that chaotic period during Greece's debt drama.
A Controversial Choice
According to Tsipras's recollections, Tsipras chose that unorthodox academic Yanis Varoufakis to be his treasury head mainly because of the latter's international reputation and Varoufakis's very persuasive abilities as a public orator.
“In reality, he was, actually, more like a star rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader claims how his finance chief possessed a personal motives that involved advancing Varoufakis's books as well as testing out his own theories on Greece instead of genuinely fighting for its financial survival.
He explained how those talks to avoid insolvency became “not just a way to secure a better deal for Greece. They were a test, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay both the country's future and the severe cutbacks demanded in exchange for rescue loans by international creditors.
Failed Options
Efforts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a public vote, an action that threw Europe into a deeper crisis of identity.
Although the vote was carried resoundingly by voters who opposed the cuts, the prime minister was forced to ignore the result and negotiate a bailout package from foreign lenders which turned out to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who drew media attention, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
After the minister proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to pensioners, the leader knew it was the end questioning him: “Are you serious?”
Enduring Criticism
In the memoir, the author asserts that his former ally had proved himself to be “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras also claimed that his aggressive approach made him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating Grexit.
The account of history has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
