In a recently unveiled personal account, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's version, Tsipras appointed the maverick academic Yanis Varoufakis to be the finance minister primarily because of the latter's international reputation along with Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, in reality, more like a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief possessed a personal agenda which involved promoting Varoufakis's publications and experimenting with his theories using Greece rather than genuinely fighting for its financial survival.
He explained that the discussions to stave off insolvency became “not just a way of achieving improved terms for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously close to exiting the eurozone.
At stake was both Greece's future but also the punishing austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those excoriating conditions were put to a public vote, a move which threw Europe into a further existential crisis.
Even though the vote was won decisively by those who opposed austerity, the prime minister had little option but to reject its outcome then negotiate a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the man who drew publicity, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy involving creating a secondary currency as well as distributing vouchers to retirees, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and sensitive management.”
He also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
