In a newly released personal account, called Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the turbulent period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he chose that maverick academic Yanis Varoufakis to be his finance minister mainly because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills as a public orator.
“He was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras claims how his finance chief had his own motives which included advancing his books and experimenting with his economic models using Greece rather than truly fighting for the country's economic stability.
Tsipras explained how those negotiations to stave off bankruptcy were “not only a method to secure improved terms for Greece. They became a test, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece came dangerously on the brink of exiting the single currency area.
At stake lay both the country's future but also the severe cutbacks required in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those excoriating conditions were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Even though the vote was won resoundingly by voters against austerity, the prime minister had little option to ignore the result then agree to a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency as well as issuing vouchers to retirees, the leader knew it was the end questioning him: “Can you be serious?”
Lasting Rebuke
Within the memoir, the author asserts how his former ally demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras further wrote how Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
This account of history has provoked fury along with shock in some quarters, whereas the former minister has kept a deafening silence on the matter.
