In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits the turbulent era during Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's account, Tsipras chose that maverick academic Yanis Varoufakis to be his treasury head mainly due to his international reputation along with his “extremely attractive” skills when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed his own motives which included advancing Varoufakis's books and experimenting with his theories on the nation rather than genuinely fighting for its financial survival.
Tsipras noted that those negotiations to stave off insolvency were “not just a method of achieving a better deal for the country. They became a test, a monumental chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During rollercoaster negotiations, Greece came dangerously on the brink of leaving the eurozone.
At stake was not only the country's destiny but also the severe cutbacks required in exchange for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive conditions were put to a public vote, a move which plunged the EU into a further existential crisis.
Although the referendum was carried resoundingly by voters against austerity, the prime minister had little option to reject its outcome and agree to a rescue deal from foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who graced the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes how Varoufakis had proved himself to be “unfit for an agreement that required complex and delicate handling.”
Tsipras further claimed how Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
The account of events has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
