In a freshly published autobiography, called Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the turbulent era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he selected that unorthodox economist Yanis Varoufakis to be his treasury head mainly because of his international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more like a personality and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief possessed a personal agenda that included advancing his publications and testing out his theories on the nation rather than truly fighting for the country's financial survival.
Tsipras wrote that the negotiations to prevent bankruptcy became “not only a method to secure a better deal for the country. They were a test, an historic opportunity to prove the validity of his ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece came dangerously close to leaving the eurozone.
On the line lay both the country's future and those severe cutbacks demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, such as a desperate appeal to Russia to purchase Greek bonds, were rejected.
Assisting Greece was equivalent to throwing money into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move which threw the EU into further existential crisis.
Although the vote was carried decisively by voters against the cuts, the prime minister was forced to ignore the result and agree to a bailout package from foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author concludes how his former ally had proved himself “unfit for an agreement that required complex and delicate management.”
He also claimed how his confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
The account of events has provoked anger along with stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet on the matter.
