In a newly released memoir, titled Ithaki, the former prime minister Alexis Tsipras spares no criticism while he examines the chaotic era during Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras selected the maverick economist Yanis Varoufakis to be the treasury head mainly due to his international reputation along with his very persuasive skills as a speaker.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges that Varoufakis possessed a personal motives which included advancing Varoufakis's publications as well as experimenting with his own game theories using the nation rather than truly advocating its financial survival.
He wrote how the negotiations to prevent insolvency were “not only a method to secure a better deal for Greece. They were a test, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came dangerously close to leaving the single currency area.
At stake lay both Greece's destiny but also the punishing austerity measures demanded in exchange for rescue loans by international creditors.
Failed Options
Attempts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action which plunged the EU into further crisis of identity.
Even though the referendum was won decisively by voters against austerity, the prime minister was forced to ignore the result and negotiate a bailout package with foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of publications the world over … it seemed he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as distributing coupons to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras asserts that his former ally had proved himself “unsuitable for a deal that required complex and sensitive management.”
He further wrote that his aggressive approach left him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
