In a freshly published memoir, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's recollections, he appointed the maverick academic Yanis Varoufakis as the treasury head mainly because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills as a speaker.
“He was, actually, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis possessed a personal agenda which involved advancing his books as well as experimenting with his economic models using Greece rather than truly advocating the country's financial survival.
Tsipras wrote that those negotiations to stave off bankruptcy became “not only a way of achieving improved terms for Greece. They were an experiment, an historic chance to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
Amid tense discussions, Greece found itself perilously close to exiting the eurozone.
On the line was both Greece's destiny and the harsh cutbacks required in exchange for financial aid by international creditors.
Failed Alternatives
Attempts to find funds elsewhere, such as a desperate plea to the Kremlin to buy Greek bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the punitive conditions were subjected to a popular referendum, an action which threw the EU into a further crisis of identity.
Although the vote was carried resoundingly by those against the cuts, Tsipras was forced but to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency and distributing coupons to retirees, the leader knew that it was game over and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras further claimed that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were advocating Grexit.
This account of history has provoked fury and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
