In a freshly published memoir, called Ithaki, the ex- prime minister Alexis Tsipras spares no criticism as he reflects on the turbulent era during Greece's financial crisis.
A Controversial Choice
In Tsipras's version, Tsipras appointed that unorthodox academic Yanis Varoufakis to be his treasury head primarily because of his international reputation and his highly compelling skills as a speaker.
“He was, actually, more of a personality rather than an economic expert,” wrote Tsipras.
Conflicting Agendas
The former leader alleges that Varoufakis had his own agenda that involved promoting Varoufakis's publications and experimenting with his theories on Greece rather than truly fighting for the country's economic stability.
Tsipras explained how the negotiations to avoid bankruptcy were “not only a way to secure improved terms for Greece. They were a test, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.
At stake was both Greece's destiny and the harsh austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, a move which threw the EU into deeper existential crisis.
Even though the referendum was carried resoundingly by voters against austerity, the prime minister had little option but to reject its outcome and negotiate a bailout package with foreign lenders which turned out to be tougher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy that included creating a secondary currency and issuing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
He further claimed that Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
This retelling of history has provoked fury and stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
