Within his freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism as he revisits that turbulent era of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, he appointed that unorthodox academic Yanis Varoufakis as his treasury head primarily because of his global profile and Varoufakis's very persuasive skills when it came to speaker.
“He was, truthfully, more like a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief possessed a personal agenda which included advancing Varoufakis's publications as well as testing out his own theories using Greece rather than genuinely fighting for the country's economic stability.
He explained that those negotiations to avoid bankruptcy were “not just a method to secure improved terms for Greece. They became a test, a monumental chance to prove the validity of Varoufakis's theories.”
Critical Talks
Amid tense discussions, Greece came dangerously on the brink of leaving the eurozone.
At stake lay both Greece's future but also those harsh austerity policies required in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that threw Europe into further existential crisis.
Even though the vote was won resoundingly by voters against the cuts, Tsipras had little option to reject its outcome then agree to a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the man who drew publicity, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, the leader said he realised it was the end and asked him: “Are you serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate handling.”
He also wrote how his aggressive style left him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This account of events has provoked fury along with shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
