In a newly released personal account, titled Ithaki, the ex- leader Alexis Tsipras does not hold back as he reflects on that chaotic era of Greece's financial crisis.
An Unconventional Choice
In Tsipras's account, he chose that maverick academic Yanis Varoufakis as his treasury head largely because of the latter's international reputation along with his “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more like a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims that Varoufakis had a personal agenda that included advancing Varoufakis's publications as well as testing out his own economic models on Greece rather than truly fighting for the country's economic stability.
He noted how those negotiations to prevent insolvency were “not just a method to secure a better deal for the country. They became an experiment, an historic chance to prove the truth of his economic theories.”
Critical Talks
During tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
At stake was both the country's future and those severe cutbacks demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent appeal to the Kremlin to buy Greek bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, an action which plunged Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed the cuts, Tsipras had little option to ignore the result then agree to a bailout package with creditors that turned out to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency and issuing coupons to pensioners, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and delicate management.”
He further claimed that Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks who were advocating Grexit.
This account of history has provoked anger along with stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
