Within his freshly published personal account, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits that turbulent period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's version, Tsipras selected that maverick academic Yanis Varoufakis to be the treasury head largely due to his worldwide fame and his highly compelling abilities as a speaker.
“In reality, he was, truthfully, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Agendas
The former leader alleges that his finance chief had his own agenda which included advancing Varoufakis's publications as well as experimenting with his own economic models on the nation rather than truly fighting for its economic stability.
Tsipras explained that those negotiations to stave off insolvency became “not only a method to secure improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of his ideas.”
Critical Negotiations
During tense negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
At stake lay both the country's future but also the harsh austerity measures demanded in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was tantamount to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those excoriating conditions were subjected to a public vote, a move which plunged the EU into deeper existential crisis.
Even though the referendum was won resoundingly by those against austerity, the prime minister was forced but to reject its outcome then negotiate a rescue deal from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
He further wrote how Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, and helped hawks that were advocating Grexit.
This account of events has been met with anger and shock among certain groups, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
