In a newly released personal account, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on that chaotic era of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's account, Tsipras chose that unorthodox economist Yanis Varoufakis to be his finance minister mainly because of his global profile and his highly compelling skills as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests how his finance chief had a personal agenda that involved promoting Varoufakis's books as well as testing out his own economic models on Greece rather than genuinely fighting for the country's financial survival.
He wrote how the discussions to prevent insolvency were “not only a way of achieving a better deal for the country. They became an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country came dangerously close to leaving the eurozone.
On the line lay both Greece's future but also the harsh austerity policies required in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the harsh conditions were put to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the referendum was carried decisively by those who opposed the cuts, Tsipras was forced but to ignore the result and agree to a rescue deal from creditors that turned out to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a secondary currency and distributing coupons to retirees, the leader knew it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement demanding intricate and delicate handling.”
Tsipras further claimed how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for Grexit.
This retelling of events has been met with anger and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
