Within his recently unveiled personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's economic turmoil.
An Unconventional Choice
In Tsipras's account, Tsipras appointed the maverick academic Yanis Varoufakis as the treasury head largely because of the latter's worldwide fame along with Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, in reality, more like a celebrity rather than an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief possessed a personal motives that involved promoting his books and experimenting with his own economic models using Greece rather than genuinely fighting for its economic stability.
He wrote that those talks to prevent bankruptcy were “not only a way of achieving improved terms for Greece. They became a test, a monumental chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was not only the country's destiny and the severe austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were put to a popular referendum, a move which threw Europe into a further crisis of identity.
Although the referendum was carried resoundingly by voters who opposed the cuts, Tsipras had little option but to ignore the result then agree to a bailout package from creditors which turned out to be more severe.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy involving establishing a parallel currency and issuing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis had proved himself “unfit for a deal that required intricate and delicate handling.”
Tsipras also wrote that Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, while helped hawks that were advocating a Greek exit from the euro.
This account of history has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
