Within his recently unveiled personal account, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that chaotic era during Greece's debt drama.
A Controversial Appointment
According to Tsipras's account, he selected the maverick economist Yanis Varoufakis as the finance minister mainly because of his worldwide fame and Varoufakis's very persuasive abilities as a public orator.
“He was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader suggests that his finance chief had his own agenda that involved advancing Varoufakis's publications as well as testing out his own economic models using Greece instead of genuinely advocating its financial survival.
Tsipras wrote that the discussions to avoid bankruptcy became “not just a method to secure improved terms for the country. They were an experiment, a monumental chance to prove the truth of his theories.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line was both the country's destiny but also the harsh cutbacks required in exchange for financial aid by international creditors.
Failed Options
Attempts to secure financing elsewhere, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were put to a popular referendum, a move which plunged the EU into deeper existential crisis.
Although the referendum was won decisively by voters against the cuts, Tsipras had little option to reject its outcome then agree to a bailout package with foreign lenders that proved to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When the minister outlined a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and delicate management.”
He also claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hawks who were pushing for Grexit.
This retelling of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
