In a freshly published autobiography, called Ithaki, the ex- leader Alexis Tsipras spares no criticism as he revisits the chaotic period of Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's account, he appointed that maverick economist Yanis Varoufakis as his treasury head primarily due to his global profile and his highly compelling abilities as a public orator.
“He was, actually, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims that his finance chief had a personal motives which included advancing his publications as well as testing out his own economic models using the nation instead of genuinely fighting for its financial survival.
Tsipras wrote how the discussions to stave off insolvency became “not just a way of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country came dangerously close to exiting the eurozone.
At stake was both Greece's future but also the severe cutbacks required in exchange for bailout funds by foreign lenders.
Failed Options
Efforts to secure funds from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told Tsipras in Moscow.
Referendum and U-Turn
That summer, the harsh conditions were put to a public vote, an action that plunged the EU into deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed austerity, the prime minister was forced but to reject its outcome and agree to a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was game over and asked him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for a deal demanding complex and delicate management.”
He further wrote that his confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief in some quarters, while the former minister has kept a deafening silence regarding these claims.
