In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he revisits that turbulent period of Greece's debt drama.
A Controversial Choice
As per the ex-PM's version, he selected that maverick economist Yanis Varoufakis to be his treasury head primarily due to his global profile and Varoufakis's “extremely attractive” skills as a communicator.
“He was, truthfully, more like a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis possessed his own motives which included promoting his publications as well as testing out his own theories using the nation rather than genuinely fighting for its financial survival.
Tsipras wrote that the discussions to avoid bankruptcy were “not only a method to secure improved terms for Greece. They were a test, a monumental chance to prove the validity of his economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself perilously close to leaving the eurozone.
On the line lay not only the country's destiny but also those punishing austerity policies required in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as an urgent plea to Russia to buy Greek bonds, were rejected.
Helping Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and U-Turn
That summer, the excoriating conditions were put to a popular referendum, a move that plunged Europe into further existential crisis.
Even though the vote was carried resoundingly by those against the cuts, the prime minister had little option but to reject its outcome and negotiate a rescue deal from creditors that proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the man who drew publicity, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing coupons to pensioners, Tsipras said he realised it was the end questioning him: “Is this for real?”
Lasting Criticism
In the book, the author asserts that Varoufakis had proved himself “unfit for an agreement that required intricate and delicate management.”
He also claimed that his aggressive approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were pushing for Grexit.
This account of events has been met with anger and shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
