Within his newly released autobiography, called Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that turbulent period of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's version, he appointed the unorthodox academic Yanis Varoufakis to be his treasury head mainly because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more of a star and less of an economist,” wrote the 51-year-old.
Clashing Priorities
Tsipras alleges how Varoufakis possessed a personal motives which involved advancing his publications and testing out his own theories on Greece instead of truly fighting for its economic stability.
He explained that the discussions to avoid bankruptcy became “not just a way to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, Greece came perilously on the brink of exiting the single currency area.
On the line lay not only Greece's future and those harsh austerity policies required in exchange for bailout funds by foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, a move that plunged the EU into a further existential crisis.
Although the referendum was carried resoundingly by those against the cuts, Tsipras had little option but to reject its outcome and agree to a rescue deal with foreign lenders which proved to be more severe.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included establishing a secondary currency and issuing vouchers to retirees, the leader knew it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate handling.”
Tsipras also wrote how his aggressive approach left him increasingly isolated among peers, endangered the country, and helped hawks that were pushing for Grexit.
The retelling of events has provoked fury and shock in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
