Within his newly released personal account, called Ithaki, the former prime minister Alexis Tsipras does not hold back as he reflects on that turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's version, Tsipras selected the unorthodox academic Yanis Varoufakis as his treasury head mainly due to his worldwide fame and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, actually, more like a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief had his own motives that included advancing his publications and experimenting with his own game theories using Greece rather than truly advocating the country's economic stability.
Tsipras explained how those negotiations to avoid insolvency were “not only a method to secure a better deal for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came dangerously on the brink of leaving the eurozone.
At stake lay not only Greece's future and the severe cutbacks demanded in exchange for rescue loans by international creditors.
Failed Options
Attempts to secure funds from other sources, such as an urgent plea to Russia to buy Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
That summer, the punitive bailout terms were put to a popular referendum, an action which threw the EU into a deeper crisis of identity.
Even though the vote was carried decisively by voters who opposed austerity, the prime minister was forced but to reject its outcome and negotiate a rescue deal with creditors that proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
He further wrote that his confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
The account of events has been met with anger and shock in some quarters, whereas Varoufakis has kept a deafening silence regarding these claims.
