In a newly released personal account, called Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits that turbulent era during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, he appointed the maverick academic Yanis Varoufakis as his treasury head largely due to his global profile and Varoufakis's very persuasive abilities as a public orator.
“He was, actually, more of a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief had his own motives that involved promoting his publications and experimenting with his own theories using the nation instead of truly fighting for the country's financial survival.
Tsipras wrote that the negotiations to stave off bankruptcy became “not just a way of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Talks
Amid tense discussions, Greece came perilously close to leaving the single currency area.
On the line was both Greece's future but also those severe austerity policies required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, including a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, those punitive bailout terms were put to a public vote, a move which plunged Europe into a further existential crisis.
Even though the referendum was won resoundingly by voters against the cuts, Tsipras was forced to ignore the result then negotiate a bailout package from foreign lenders which turned out to be more severe.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate handling.”
He also claimed how his confrontational approach left him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were pushing for Grexit.
This retelling of history has provoked anger along with stunned disbelief among certain groups, whereas the former minister has maintained a conspicuous quiet on the matter.
