In a recently unveiled personal account, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on that chaotic era of Greece's debt drama.
A Controversial Appointment
In Tsipras's version, Tsipras chose the unorthodox economist Yanis Varoufakis to be the treasury head largely because of the latter's worldwide fame along with his highly compelling abilities as a speaker.
“In reality, he was, in reality, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief possessed a personal agenda which included promoting Varoufakis's publications as well as experimenting with his theories on Greece instead of truly fighting for its financial survival.
He noted how the discussions to avoid bankruptcy became “not just a way of achieving a better deal for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
During volatile negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line lay not only Greece's future but also the punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, a move that plunged the EU into deeper crisis of identity.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result and negotiate a rescue deal from creditors which proved to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency as well as issuing coupons to pensioners, the leader knew that it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes that his former ally had proved himself to be “unsuitable for an agreement demanding intricate and sensitive handling.”
Tsipras also claimed how his confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
The account of events has been met with anger and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
