In a freshly published memoir, called Ithaki, the ex- premier Alexis Tsipras spares no criticism as he examines the turbulent period of Greece's debt drama.
An Unconventional Appointment
As per Tsipras's version, he appointed the unorthodox academic Yanis Varoufakis to be his finance minister primarily due to his global profile along with his “extremely attractive” abilities as a speaker.
“He was, actually, more like a personality rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief possessed his own agenda which included promoting Varoufakis's publications as well as testing out his theories on the nation rather than genuinely advocating its financial survival.
He wrote that the discussions to avoid insolvency were “not just a way of achieving a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
During tense discussions, the country came dangerously close to exiting the single currency area.
At stake was not only Greece's destiny but also those severe austerity policies demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those harsh bailout terms were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Even though the vote was carried resoundingly by those who opposed austerity, the prime minister was forced to ignore the result and agree to a rescue deal with creditors which proved to be tougher.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When the minister outlined a backup strategy that included creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, the author concludes how his former ally had proved himself “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras also claimed how his aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This account of history has been met with anger along with shock in some quarters, whereas Varoufakis has so far maintained a deafening silence on the matter.
