In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back while he examines that chaotic era of Greece's debt drama.
A Controversial Appointment
According to Tsipras's version, Tsipras chose the unorthodox academic Yanis Varoufakis to be the finance minister largely because of the latter's international reputation and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, actually, more like a personality rather than an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief had a personal agenda which included advancing Varoufakis's books as well as experimenting with his own economic models using Greece rather than truly fighting for the country's economic stability.
He explained that the negotiations to prevent bankruptcy were “not only a way to secure improved terms for the country. They became a test, a monumental chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came perilously close to exiting the eurozone.
On the line lay both the country's destiny and the harsh austerity policies required in return for financial aid by international creditors.
Failed Alternatives
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were put to a public vote, a move which threw the EU into deeper existential crisis.
Although the referendum was won resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result and agree to a rescue deal with creditors which turned out to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who drew media attention, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving establishing a parallel currency and distributing vouchers to retirees, the leader said he realised that it was the end and asked him: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes how his former ally had proved himself “unfit for a deal demanding complex and sensitive management.”
He also claimed how his aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were advocating a Greek exit from the euro.
This account of events has provoked anger along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
