In a newly released personal account, called Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the turbulent period of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, Tsipras chose the maverick academic Yanis Varoufakis to be his finance minister mainly because of his global profile and Varoufakis's very persuasive skills as a communicator.
“In reality, he was, actually, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that his finance chief possessed a personal motives that involved promoting Varoufakis's books and testing out his own economic models on Greece instead of truly fighting for the country's financial survival.
Tsipras wrote how the discussions to stave off bankruptcy became “not just a way to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line was not only the country's destiny but also the punishing austerity policies required in exchange for rescue loans by international creditors.
Failed Options
Attempts to secure financing elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating conditions were subjected to a popular referendum, a move which threw Europe into a further crisis of identity.
Although the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced to ignore the result then agree to a bailout package from creditors that turned out to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the book, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and sensitive handling.”
He further claimed that his confrontational style left him more and more alone with colleagues, endangered the country, and helped hardliners that were pushing for Grexit.
The account of events has been met with fury and shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
