Within his newly released memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches while he examines that turbulent period of Greece's debt drama.
A Controversial Choice
As per the ex-PM's recollections, Tsipras chose that maverick economist Yanis Varoufakis as the treasury head largely because of the latter's international reputation along with Varoufakis's highly compelling abilities as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that his finance chief possessed a personal agenda which included promoting Varoufakis's publications as well as testing out his own game theories using Greece instead of truly advocating the country's financial survival.
Tsipras noted how those discussions to avoid insolvency were “not just a method of achieving a better deal for the country. They became an experiment, an historic opportunity to prove the truth of his economic theories.”
Critical Talks
During tense negotiations, the country came perilously on the brink of leaving the eurozone.
On the line was not only the country's destiny but also the harsh austerity measures demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, the excoriating conditions were subjected to a popular referendum, a move which threw Europe into a deeper crisis of identity.
Even though the referendum was carried decisively by voters who opposed the cuts, Tsipras was forced but to ignore the result then agree to a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included creating a parallel currency and distributing vouchers to pensioners, Tsipras said he realised it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
He further claimed that his confrontational style made him more and more alone with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.