In a recently unveiled memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's version, Tsipras appointed the unorthodox academic Yanis Varoufakis as his finance minister largely due to the latter's worldwide fame and Varoufakis's very persuasive abilities when it came to communicator.
“In reality, he was, in reality, more like a star and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief possessed his own motives that included promoting his books as well as experimenting with his own game theories using the nation instead of genuinely advocating the country's economic stability.
He noted that the discussions to avoid bankruptcy were “not only a method to secure a better deal for the country. They became a test, an historic chance to prove the truth of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, the country found itself dangerously close to exiting the single currency area.
At stake lay both Greece's future and those punishing austerity policies demanded in return for financial aid by foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a public vote, a move that threw Europe into a deeper existential crisis.
Although the referendum was won decisively by voters who opposed the cuts, Tsipras had little option to ignore the result then negotiate a bailout package from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving creating a parallel currency and issuing coupons to retirees, the leader said he realised that it was the end and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He further claimed how Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, while helped hardliners that were pushing for a Greek exit from the euro.
This account of events has been met with anger and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
