In a newly released personal account, named Ithaki, the former premier Alexis Tsipras does not hold back while he examines the turbulent era of Greece's debt drama.
A Controversial Appointment
According to Tsipras's version, he appointed that maverick economist Yanis Varoufakis to be the treasury head largely because of his international reputation along with Varoufakis's highly compelling skills when it came to communicator.
“He was, actually, more of a star and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests how his finance chief possessed his own agenda which involved promoting Varoufakis's publications and testing out his economic models using the nation rather than truly fighting for the country's economic stability.
Tsipras explained that those talks to prevent insolvency became “not just a way to secure a better deal for the country. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the single currency area.
At stake was both the country's future but also the severe cutbacks required in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those harsh conditions were put to a popular referendum, an action which plunged the EU into deeper existential crisis.
Even though the vote was won decisively by voters against the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency and issuing vouchers to retirees, the leader said he realised it was game over and asked him: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally demonstrated himself “unfit for a deal that required complex and delicate handling.”
He also claimed that his confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
The retelling of history has been met with fury and shock among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
