Within his newly released memoir, named Ithaki, the ex- leader Alexis Tsipras spares no criticism while he reflects on that turbulent era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, he selected the maverick economist Yanis Varoufakis as the finance minister mainly due to his international reputation and his “extremely attractive” abilities as a public orator.
“He was, in reality, more like a personality and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras claims that his finance chief had his own agenda which included advancing Varoufakis's publications and testing out his own theories using Greece rather than truly fighting for its financial survival.
Tsipras wrote that those negotiations to stave off insolvency were “not just a method to secure a better deal for Greece. They were a test, a monumental opportunity to prove the truth of his economic theories.”
Critical Talks
Amid rollercoaster negotiations, the country found itself perilously on the brink of leaving the single currency area.
At stake was both Greece's future and those severe austerity policies demanded in return for financial aid from foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those harsh bailout terms were put to a public vote, an action which threw the EU into deeper existential crisis.
Although the referendum was won resoundingly by voters who opposed austerity, Tsipras was forced but to ignore the result then negotiate a bailout package from foreign lenders which proved to be more severe.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency and distributing vouchers to retirees, the leader knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras also wrote that his aggressive style left him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were advocating Grexit.
The account of events has provoked fury and shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
