Within his freshly published memoir, called Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on that turbulent period of Greece's debt drama.
A Controversial Choice
In the ex-PM's account, he appointed that maverick academic Yanis Varoufakis as his treasury head primarily due to his international reputation and his very persuasive abilities when it came to public orator.
“He was, truthfully, more like a celebrity rather than an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras alleges that his finance chief had a personal motives which included promoting his books and experimenting with his theories using Greece instead of truly fighting for the country's financial survival.
He explained that those discussions to avoid insolvency became “not only a way of achieving improved terms for Greece. They became an experiment, an historic chance to prove the validity of his economic theories.”
Critical Negotiations
During tense discussions, Greece came dangerously on the brink of leaving the eurozone.
At stake lay both Greece's destiny but also the severe austerity measures required in exchange for bailout funds from international creditors.
Failed Options
Efforts to find funds elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were put to a public vote, an action which plunged the EU into further existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome then negotiate a bailout package with foreign lenders which proved to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras concludes how Varoufakis had proved himself “unsuitable for an agreement that required intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of history has provoked fury and shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
