In a newly released personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back while he examines the turbulent era of Greece's debt drama.
A Controversial Appointment
In Tsipras's recollections, Tsipras appointed the unorthodox economist Yanis Varoufakis as the finance minister largely because of his worldwide fame and Varoufakis's very persuasive abilities when it came to communicator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” wrote the 51-year-old.
Clashing Priorities
Tsipras alleges how Varoufakis had a personal agenda that included promoting Varoufakis's publications and testing out his own theories using Greece instead of genuinely fighting for its financial survival.
He wrote that the discussions to prevent insolvency were “not only a way of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
During volatile discussions, Greece found itself dangerously close to leaving the single currency area.
At stake was both Greece's destiny but also those severe austerity policies demanded in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find funds elsewhere, such as an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, the harsh bailout terms were subjected to a public vote, a move which plunged the EU into a further crisis of identity.
Although the vote was won decisively by voters against austerity, the prime minister had little option but to ignore the result then agree to a bailout package from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
He also claimed that his confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
