In a newly released memoir, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, he selected that maverick academic Yanis Varoufakis to be the finance minister largely because of his worldwide fame along with Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, in reality, more like a star and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader alleges how his finance chief had a personal motives which involved advancing Varoufakis's publications as well as testing out his own game theories using the nation rather than truly advocating the country's financial survival.
Tsipras explained that the negotiations to prevent insolvency became “not only a way of achieving improved terms for the country. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake lay both Greece's future but also those harsh austerity measures demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, those excoriating conditions were put to a popular referendum, an action which plunged Europe into a further crisis of identity.
Even though the vote was won decisively by voters who opposed austerity, Tsipras was forced to ignore the result and negotiate a bailout package with foreign lenders which turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and issuing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, the author concludes that his former ally demonstrated himself “unfit for an agreement that required intricate and sensitive management.”
Tsipras also claimed how his confrontational approach left him increasingly isolated among peers, endangered the country, while helped hardliners that were pushing for Grexit.
This retelling of events has provoked fury and shock among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
