In a freshly published personal account, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, he chose that unorthodox academic Yanis Varoufakis as his treasury head primarily because of the latter's international reputation and Varoufakis's highly compelling abilities when it came to speaker.
“He was, actually, more of a celebrity rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests how his finance chief possessed his own motives that included promoting his books as well as experimenting with his theories using Greece instead of truly fighting for its financial survival.
He explained how those negotiations to prevent bankruptcy were “not just a method to secure a better deal for the country. They became a test, an historic chance to demonstrate the validity of his economic theories.”
Critical Talks
During volatile discussions, the country came dangerously close to leaving the single currency area.
At stake lay both Greece's future and those severe austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Options
Efforts to find financing from other sources, such as an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were put to a popular referendum, an action which threw the EU into further crisis of identity.
Even though the vote was won resoundingly by voters against the cuts, Tsipras was forced but to ignore the result then agree to a bailout package from creditors which turned out to be more severe.
Final Straw
Tsipras revealed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After the minister outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author asserts that his former ally demonstrated himself to be “unsuitable for an agreement that required complex and sensitive management.”
Tsipras also claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
