In a freshly published autobiography, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's debt drama.
A Controversial Choice
As per the ex-PM's account, he selected the unorthodox academic Yanis Varoufakis as his finance minister mainly because of the latter's global profile along with Varoufakis's very persuasive skills as a communicator.
“In reality, he was, actually, more of a personality rather than an economic expert,” stated the 51-year-old.
Clashing Agendas
The former leader alleges how his finance chief possessed a personal motives which involved advancing Varoufakis's publications and testing out his game theories using Greece instead of truly fighting for the country's financial survival.
He wrote that the talks to prevent insolvency became “not only a method to secure improved terms for the country. They were an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Talks
During rollercoaster negotiations, the country came perilously close to exiting the single currency area.
On the line was both the country's future but also those punishing cutbacks demanded in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
That summer, those punitive conditions were subjected to a public vote, an action that threw Europe into deeper existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, Tsipras was forced to ignore the result then negotiate a bailout package with foreign lenders which proved to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After the minister proposed a backup strategy that included creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised it was game over questioning him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unfit for a deal that required intricate and delicate management.”
He further claimed how Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
