Within his newly released autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he examines that chaotic period of Greece's debt drama.
A Controversial Appointment
According to Tsipras's version, he chose the maverick academic Yanis Varoufakis as his treasury head mainly due to the latter's global profile and Varoufakis's highly compelling abilities as a communicator.
“He was, in reality, more of a celebrity and less of an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that his finance chief had his own agenda which involved promoting his publications as well as testing out his game theories on Greece rather than genuinely advocating the country's economic stability.
Tsipras noted how those discussions to stave off insolvency became “not just a method to secure a better deal for Greece. They became a test, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Talks
During volatile negotiations, the country came dangerously on the brink of exiting the eurozone.
At stake lay not only Greece's destiny but also those punishing austerity policies demanded in return for financial aid from international creditors.
Unsuccessful Options
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
In July 2015, those harsh bailout terms were put to a public vote, an action that plunged Europe into a further existential crisis.
Even though the vote was won resoundingly by voters who opposed the cuts, the prime minister was forced but to ignore the result and negotiate a bailout package from creditors that turned out to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a backup strategy that included creating a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for a deal that required intricate and delicate management.”
Tsipras also wrote how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for Grexit.
This account of events has been met with anger along with stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
