In a freshly published memoir, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines the turbulent period during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's account, he chose the unorthodox economist Yanis Varoufakis to be his treasury head mainly due to the latter's global profile along with his very persuasive skills when it came to public orator.
“He was, in reality, more of a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had his own motives that involved promoting his publications as well as testing out his own economic models on the nation instead of truly fighting for the country's financial survival.
Tsipras explained that the negotiations to prevent bankruptcy were “not just a way to secure improved terms for the country. They became a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously close to exiting the eurozone.
At stake was not only the country's destiny but also those severe austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to find financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive conditions were subjected to a public vote, a move that threw the EU into further crisis of identity.
Even though the referendum was won decisively by voters against the cuts, the prime minister was forced to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who drew publicity, who graced the covers of publications globally … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan involving creating a secondary currency and issuing coupons to pensioners, Tsipras knew it was the end and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the memoir, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
Tsipras also wrote how his confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners who were advocating Grexit.
The account of events has provoked fury and shock in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
