Within his recently unveiled memoir, called Ithaki, the ex- leader Tsipras pulls no punches while he reflects on that chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, he appointed the unorthodox academic Yanis Varoufakis to be his treasury head mainly due to his global profile and Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, truthfully, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief had a personal agenda which included advancing Varoufakis's books and testing out his own theories on Greece instead of truly advocating its economic stability.
He explained how those negotiations to avoid insolvency became “not only a way of achieving improved terms for Greece. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid volatile discussions, the country came perilously close to exiting the eurozone.
On the line was not only Greece's future but also the punishing austerity measures required in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the excoriating bailout terms were subjected to a public vote, a move that plunged the EU into a further crisis of identity.
Although the vote was won decisively by voters who opposed the cuts, the prime minister had little option but to reject its outcome then negotiate a bailout package with creditors which proved to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
When the minister proposed a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, the leader knew that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the book, the author concludes that Varoufakis had proved himself to be “unfit for an agreement demanding intricate and sensitive handling.”
He also claimed that his confrontational style made him more and more alone with colleagues, put Greece at risk, and assisted hardliners who were advocating Grexit.
This retelling of events has been met with fury along with stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
