In a newly released memoir, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he reflects on the turbulent period of Greece's economic turmoil.
A Controversial Appointment
In Tsipras's account, he selected the maverick economist Yanis Varoufakis to be his finance minister mainly due to the latter's international reputation and his very persuasive skills when it came to public orator.
“He was, actually, more of a star rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims that his finance chief had a personal agenda that involved advancing Varoufakis's books as well as testing out his own economic models on Greece instead of truly advocating the country's economic stability.
He noted that the negotiations to stave off bankruptcy became “not just a method of achieving improved terms for Greece. They became a test, a monumental chance to prove the validity of his ideas.”
Critical Negotiations
Amid volatile discussions, the country found itself perilously close to exiting the eurozone.
At stake lay both the country's destiny and those punishing austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those punitive bailout terms were put to a public vote, a move which threw Europe into deeper crisis of identity.
Even though the vote was carried resoundingly by those who opposed austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who attracted media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and distributing coupons to retirees, the leader knew it was game over questioning him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts that his former ally demonstrated himself “unsuitable for an agreement demanding intricate and delicate handling.”
Tsipras also claimed how his confrontational style left him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of events has provoked anger along with shock in some quarters, while the former minister has maintained a deafening silence regarding these claims.
