Within his recently unveiled memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines that chaotic era during Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's recollections, he appointed the unorthodox academic Yanis Varoufakis to be his finance minister mainly due to his worldwide fame and Varoufakis's very persuasive abilities as a communicator.
“He was, in reality, more of a celebrity rather than an economist,” stated Tsipras.
Clashing Priorities
The former leader suggests how his finance chief possessed his own motives which included promoting his publications and testing out his economic models using Greece rather than truly advocating its economic stability.
He wrote how those negotiations to prevent bankruptcy became “not only a method of achieving improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
At stake was both Greece's destiny but also the severe austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, the harsh conditions were subjected to a public vote, an action that threw the EU into a further existential crisis.
Although the vote was carried resoundingly by those against the cuts, the prime minister was forced but to ignore the result then negotiate a rescue deal with creditors that turned out to be tougher.
Final Straw
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes how Varoufakis had proved himself “unfit for a deal that required intricate and sensitive management.”
He also claimed how Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hardliners that were pushing for Grexit.
This retelling of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
