Within his newly released memoir, called Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on the turbulent era during Greece's financial crisis.
An Unconventional Choice
In the ex-PM's version, Tsipras selected the maverick economist Yanis Varoufakis as his treasury head mainly due to his international reputation along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, actually, more like a star and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed a personal motives that included advancing his publications and experimenting with his game theories using Greece instead of truly advocating the country's financial survival.
He explained that the negotiations to prevent bankruptcy became “not only a way to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself dangerously close to leaving the eurozone.
At stake was not only the country's destiny but also those severe austerity measures demanded in return for bailout funds by international creditors.
Failed Options
Attempts to secure funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into further crisis of identity.
Although the vote was won decisively by voters who opposed austerity, Tsipras had little option to reject its outcome then agree to a rescue deal from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, the author asserts that Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate management.”
He further wrote how Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
The retelling of history has been met with anger along with shock in some quarters, while the former minister has kept a deafening silence on the matter.
