Within his freshly published memoir, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits the turbulent period during Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, he chose that unorthodox economist Yanis Varoufakis as his finance minister largely because of his worldwide fame and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader suggests how Varoufakis possessed a personal motives that included advancing Varoufakis's publications as well as experimenting with his own economic models on Greece instead of truly advocating its financial survival.
He explained how the talks to avoid insolvency were “not only a method of achieving improved terms for Greece. They were an experiment, a monumental chance to prove the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece came dangerously on the brink of exiting the single currency area.
On the line was both the country's future and those severe austerity measures required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the excoriating conditions were subjected to a public vote, a move which threw Europe into a deeper crisis of identity.
Although the referendum was won resoundingly by those who opposed austerity, Tsipras was forced to ignore the result and agree to a bailout package from creditors that turned out to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy that included creating a secondary currency and distributing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and sensitive management.”
Tsipras also wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
The account of history has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
