In a freshly published memoir, named Ithaki, the former prime minister Alexis Tsipras does not hold back while he revisits that turbulent era during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's account, he selected that maverick academic Yanis Varoufakis to be the treasury head largely due to the latter's worldwide fame along with Varoufakis's very persuasive abilities as a communicator.
“He was, truthfully, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief possessed a personal agenda which included advancing his books as well as experimenting with his theories using Greece instead of truly fighting for its economic stability.
He noted that the discussions to prevent bankruptcy were “not just a way of achieving a better deal for the country. They were a test, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece found itself dangerously close to exiting the eurozone.
On the line was not only the country's destiny and the harsh cutbacks required in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the punitive bailout terms were put to a public vote, a move which threw the EU into further existential crisis.
Even though the vote was won resoundingly by those who opposed the cuts, the prime minister had little option to reject its outcome then agree to a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy that included creating a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the book, Tsipras concludes how his former ally had proved himself to be “unfit for a deal that required intricate and sensitive handling.”
He further claimed that Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
This account of history has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
