In a freshly published memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the turbulent era of Greece's debt drama.
A Controversial Appointment
In Tsipras's account, he chose the unorthodox economist Yanis Varoufakis to be his treasury head mainly due to his global profile and his highly compelling skills when it came to communicator.
“He was, truthfully, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests that Varoufakis had a personal motives which involved advancing Varoufakis's books as well as experimenting with his own theories on the nation instead of genuinely fighting for the country's financial survival.
He wrote how those discussions to stave off bankruptcy were “not only a way to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line was both the country's future but also the harsh austerity measures required in return for financial aid from international creditors.
Unsuccessful Alternatives
Attempts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, the excoriating conditions were put to a public vote, an action which threw Europe into a deeper existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option but to ignore the result and agree to a bailout package with foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a contingency plan involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, the author concludes that his former ally demonstrated himself “unsuitable for a deal that required complex and delicate handling.”
Tsipras further claimed how Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
This retelling of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
