Within his recently unveiled autobiography, named Ithaki, the former leader Alexis Tsipras spares no criticism as he examines the chaotic period during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's recollections, he selected that unorthodox academic Yanis Varoufakis as his treasury head primarily because of the latter's international reputation and Varoufakis's very persuasive skills as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economist,” stated the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis possessed his own agenda which included advancing his publications and experimenting with his own theories using the nation instead of genuinely advocating its financial survival.
He explained that those discussions to stave off bankruptcy became “not just a way of achieving a better deal for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came dangerously close to exiting the single currency area.
On the line lay both the country's destiny and those harsh austerity measures demanded in exchange for rescue loans by foreign lenders.
Failed Options
Attempts to find financing elsewhere, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, a move which threw Europe into further crisis of identity.
Even though the referendum was won decisively by those against austerity, the prime minister had little option to ignore the result then negotiate a bailout package from creditors that proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency and distributing coupons to pensioners, the leader said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis had proved himself “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also claimed that Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
This account of events has been met with anger and shock among certain groups, while the former minister has kept a deafening silence on the matter.
