Within his freshly published autobiography, named Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on that chaotic era of Greece's economic turmoil.
An Unconventional Choice
In Tsipras's recollections, Tsipras chose the unorthodox academic Yanis Varoufakis to be the treasury head mainly due to the latter's global profile along with Varoufakis's highly compelling abilities as a communicator.
“In reality, he was, in reality, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis had his own motives that involved promoting Varoufakis's publications as well as testing out his economic models using Greece instead of truly fighting for its economic stability.
He noted how the talks to stave off bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Talks
Amid volatile negotiations, Greece found itself perilously close to leaving the single currency area.
On the line lay both the country's destiny and the harsh cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum and Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed austerity, the prime minister had little option to ignore the result and agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who drew media attention, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader said he realised it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself “unsuitable for a deal demanding complex and delicate handling.”
Tsipras also claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
