In a newly released autobiography, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's financial crisis.
An Unconventional Choice
In Tsipras's recollections, he chose the maverick economist Yanis Varoufakis to be the treasury head mainly due to his international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“He was, in reality, more of a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader alleges that Varoufakis possessed his own motives that involved advancing Varoufakis's books and testing out his own economic models using the nation instead of truly fighting for the country's financial survival.
Tsipras noted how those talks to stave off bankruptcy became “not just a method to secure improved terms for the country. They were a test, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid volatile negotiations, Greece found itself perilously close to leaving the eurozone.
On the line was both the country's destiny but also the harsh cutbacks demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, the prime minister was forced to ignore the result then negotiate a bailout package from foreign lenders which proved to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, the author concludes how Varoufakis had proved himself “unfit for an agreement that required intricate and delicate handling.”
Tsipras also wrote how his aggressive style left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
The retelling of history has provoked anger and shock among certain groups, whereas the former minister has so far maintained a deafening silence on the matter.
