Within his newly released memoir, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period during Greece's debt drama.
A Controversial Appointment
According to Tsipras's version, he chose that maverick academic Yanis Varoufakis as the finance minister largely because of the latter's worldwide fame and Varoufakis's very persuasive skills as a public orator.
“He was, actually, more like a star rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief had his own motives that included advancing Varoufakis's publications and experimenting with his game theories on the nation rather than truly fighting for its financial survival.
Tsipras noted that the discussions to avoid insolvency became “not only a way to secure a better deal for the country. They became a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, the country found itself dangerously close to exiting the single currency area.
At stake lay both the country's destiny but also those severe austerity policies demanded in return for rescue loans from international creditors.
Failed Alternatives
Efforts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the punitive conditions were put to a popular referendum, an action which threw the EU into deeper existential crisis.
Although the vote was carried decisively by voters against austerity, the prime minister had little option to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of publications globally … it seemed he relished his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and delicate management.”
Tsipras also wrote how his confrontational style made him more and more alone with colleagues, endangered the country, while helped hardliners who were advocating Grexit.
The account of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
