Within his newly released autobiography, called Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that turbulent era during Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's version, Tsipras appointed the maverick academic Yanis Varoufakis as the finance minister largely due to the latter's worldwide fame along with Varoufakis's highly compelling abilities as a communicator.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Priorities
The former leader claims that his finance chief possessed his own agenda that involved advancing Varoufakis's publications and experimenting with his own theories on the nation instead of genuinely advocating its economic stability.
Tsipras wrote that the discussions to avoid insolvency were “not just a method to secure improved terms for the country. They became an experiment, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
During rollercoaster negotiations, the country found itself perilously close to exiting the eurozone.
At stake was both the country's future but also the severe cutbacks required in return for financial aid from international creditors.
Unsuccessful Options
Attempts to find funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, an action which threw Europe into a deeper existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister was forced to ignore the result and agree to a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader said he realised that it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, Tsipras asserts how his former ally had proved himself to be “unfit for a deal demanding intricate and sensitive management.”
Tsipras also wrote how Varoufakis's aggressive style made him increasingly isolated with colleagues, endangered the country, while helped hardliners who were pushing for Grexit.
This account of history has provoked anger and shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
