Within his freshly published personal account, called Ithaki, the ex- premier Alexis Tsipras spares no criticism as he reflects on that turbulent period during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's recollections, he selected that unorthodox academic Yanis Varoufakis as his finance minister largely due to his global profile along with Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, in reality, more like a star and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief had his own agenda which included advancing his books and testing out his theories using Greece instead of genuinely fighting for the country's economic stability.
He noted that the negotiations to avoid insolvency were “not only a way to secure improved terms for Greece. They were a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece came perilously close to exiting the eurozone.
On the line was not only Greece's future and the punishing austerity measures required in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, a move which threw Europe into a further crisis of identity.
Although the vote was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal with creditors that turned out to be more severe.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who attracted publicity, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy that included establishing a parallel currency and issuing vouchers to retirees, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
He further wrote how Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has been met with anger along with shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
