Within his newly released memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on that turbulent era during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he appointed the maverick economist Yanis Varoufakis as his treasury head primarily because of his global profile along with Varoufakis's highly compelling skills as a communicator.
“In reality, he was, in reality, more like a star rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader claims that Varoufakis possessed his own motives which involved promoting his books as well as testing out his game theories on Greece rather than genuinely advocating its economic stability.
Tsipras noted that those discussions to prevent insolvency became “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid volatile negotiations, Greece came dangerously on the brink of leaving the eurozone.
At stake was not only the country's future but also those severe austerity policies required in exchange for financial aid by foreign lenders.
Failed Options
Attempts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move which threw the EU into further crisis of identity.
Although the vote was won decisively by those against austerity, Tsipras had little option to ignore the result then agree to a bailout package with creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines globally … it seemed he relished the spotlight.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, the author asserts that his former ally had proved himself “unfit for an agreement demanding complex and sensitive management.”
Tsipras further claimed how his aggressive approach left him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
