Within his freshly published personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's version, he selected the maverick academic Yanis Varoufakis as the treasury head mainly because of his global profile and his “extremely attractive” skills when it came to communicator.
“In reality, he was, truthfully, more like a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader claims that Varoufakis had his own motives that included promoting Varoufakis's books and testing out his game theories on Greece instead of truly fighting for its financial survival.
He explained how those negotiations to stave off insolvency became “not just a method to secure improved terms for Greece. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
During volatile negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line was not only Greece's future but also the punishing austerity policies required in return for rescue loans by international creditors.
Failed Options
Efforts to secure funds elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move which plunged the EU into a deeper existential crisis.
Although the vote was carried decisively by those against austerity, Tsipras was forced to reject its outcome then negotiate a bailout package from foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted media attention, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was game over questioning him: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate management.”
Tsipras also claimed how Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with anger along with shock in some quarters, while the former minister has so far kept a deafening silence on the matter.
