In a recently unveiled personal account, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's economic turmoil.
A Controversial Choice
As per Tsipras's account, Tsipras selected the maverick academic Yanis Varoufakis as his treasury head primarily because of the latter's international reputation and Varoufakis's highly compelling skills when it came to public orator.
“He was, in reality, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis possessed his own motives which involved promoting Varoufakis's books as well as experimenting with his theories using Greece rather than genuinely advocating the country's economic stability.
He explained how the negotiations to prevent insolvency were “not just a way to secure a better deal for the country. They were a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself perilously close to leaving the single currency area.
At stake was both the country's future but also those severe austerity policies required in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, including a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, the punitive bailout terms were put to a popular referendum, an action which threw Europe into deeper crisis of identity.
Although the referendum was won decisively by those against the cuts, the prime minister was forced but to ignore the result then negotiate a bailout package from creditors that turned out to be tougher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally had proved himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras also claimed that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were pushing for Grexit.
The retelling of events has been met with fury along with stunned disbelief among certain groups, whereas the former minister has so far maintained a deafening silence regarding these claims.
