In a newly released personal account, named Ithaki, the ex- premier Alexis Tsipras spares no criticism while he revisits that turbulent era of Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras appointed the unorthodox academic Yanis Varoufakis to be the treasury head primarily because of his worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, in reality, more like a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims that Varoufakis possessed his own agenda which included advancing Varoufakis's books as well as experimenting with his own game theories using Greece instead of truly advocating the country's financial survival.
Tsipras explained that those talks to avoid insolvency became “not just a way of achieving a better deal for Greece. They were a test, a monumental chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came dangerously close to exiting the eurozone.
At stake lay both the country's future and the punishing cutbacks required in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were put to a popular referendum, a move that plunged the EU into deeper existential crisis.
Although the vote was won decisively by voters who opposed austerity, Tsipras had little option to ignore the result and agree to a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes that his former ally had proved himself “unfit for a deal demanding intricate and sensitive handling.”
He further wrote how Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hawks who were pushing for Grexit.
This account of events has provoked anger along with stunned disbelief in some quarters, while the former minister has maintained a deafening silence regarding these claims.
