In a newly released memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back as he examines the turbulent era during Greece's debt drama.
An Unconventional Choice
As per Tsipras's recollections, he selected the unorthodox academic Yanis Varoufakis as his finance minister mainly because of the latter's global profile and his very persuasive skills as a public orator.
“He was, truthfully, more of a celebrity rather than an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how Varoufakis possessed his own agenda that included promoting Varoufakis's publications as well as testing out his own theories using Greece instead of truly fighting for the country's economic stability.
Tsipras explained how the negotiations to stave off insolvency became “not just a method of achieving a better deal for the country. They became an experiment, a monumental opportunity to prove the truth of his theories.”
Critical Talks
Amid rollercoaster discussions, the country found itself perilously close to leaving the eurozone.
On the line lay both the country's destiny but also the harsh cutbacks demanded in exchange for financial aid from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating bailout terms were put to a popular referendum, a move that plunged the EU into further existential crisis.
Although the referendum was carried resoundingly by those against austerity, Tsipras had little option to ignore the result and agree to a bailout package with creditors which proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the front pages of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and distributing coupons to pensioners, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
He further wrote how Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with anger along with shock among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
