In a newly released personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on the turbulent era of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras appointed the maverick economist Yanis Varoufakis as the treasury head mainly because of the latter's global profile and his “extremely attractive” abilities as a public orator.
“He was, actually, more like a star rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras alleges that Varoufakis had his own agenda which involved promoting his books as well as testing out his game theories on the nation instead of genuinely fighting for its economic stability.
He wrote that those negotiations to avoid insolvency were “not only a method of achieving a better deal for the country. They became an experiment, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself perilously close to exiting the single currency area.
On the line lay not only Greece's destiny and the harsh austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were subjected to a popular referendum, an action which threw the EU into further crisis of identity.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome and negotiate a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the book, the author asserts how Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras also claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, while helped hardliners that were advocating Grexit.
The retelling of events has provoked anger along with shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
