Within his recently unveiled memoir, called Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines the turbulent era during Greece's financial crisis.
An Unconventional Choice
In the ex-PM's account, Tsipras selected the unorthodox economist Yanis Varoufakis to be the finance minister mainly because of the latter's global profile along with his “extremely attractive” skills as a speaker.
“In reality, he was, actually, more of a star and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief had a personal motives that involved promoting his books and experimenting with his own theories using Greece instead of truly advocating its economic stability.
Tsipras noted how those negotiations to avoid insolvency were “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
During tense negotiations, the country came perilously on the brink of leaving the single currency area.
On the line was not only Greece's destiny but also the severe austerity policies required in exchange for rescue loans by international creditors.
Failed Options
Efforts to find funds elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a public vote, a move that threw Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by those against the cuts, the prime minister was forced to reject its outcome then agree to a bailout package from foreign lenders that proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
When the minister proposed a contingency plan that included creating a parallel currency as well as distributing coupons to retirees, the leader knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes that his former ally demonstrated himself “unsuitable for an agreement demanding intricate and sensitive handling.”
Tsipras also wrote how Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
The retelling of history has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
