In a recently unveiled personal account, called Ithaki, the former prime minister Alexis Tsipras does not hold back as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, Tsipras chose the maverick economist Yanis Varoufakis to be the treasury head largely due to his international reputation along with his highly compelling abilities as a communicator.
“He was, truthfully, more of a star and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges that his finance chief possessed a personal motives that included advancing his publications and testing out his economic models using the nation instead of truly fighting for the country's financial survival.
He explained that the discussions to prevent insolvency were “not just a way of achieving a better deal for Greece. They were an experiment, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Talks
Amid rollercoaster negotiations, the country found itself perilously close to exiting the single currency area.
At stake was both the country's future and those harsh austerity policies required in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a public vote, an action which plunged the EU into deeper crisis of identity.
Although the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced but to reject its outcome then agree to a bailout package with creditors which proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“He was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to pensioners, the leader knew that it was game over and asked him: “Are you serious?”
Enduring Criticism
Within the book, Tsipras concludes that his former ally had proved himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
