In a freshly published personal account, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits the turbulent period of Greece's debt drama.
An Unconventional Appointment
In Tsipras's version, Tsipras chose that maverick economist Yanis Varoufakis as his finance minister primarily due to his worldwide fame and his “extremely attractive” abilities when it came to speaker.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras alleges how his finance chief had a personal agenda that involved promoting his publications and experimenting with his theories on Greece rather than genuinely advocating its economic stability.
He explained that those negotiations to avoid bankruptcy became “not only a way to secure improved terms for the country. They became a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Talks
Amid tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
At stake was both the country's destiny but also the punishing austerity policies demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Public Vote and U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into a further crisis of identity.
Although the referendum was carried resoundingly by those who opposed austerity, the prime minister had little option but to ignore the result then negotiate a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the covers of magazines globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras said he realised it was game over questioning him: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how Varoufakis had proved himself “unfit for an agreement demanding complex and delicate management.”
He also wrote how Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The account of events has been met with anger and stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
