In a freshly published autobiography, called Ithaki, the former prime minister Alexis Tsipras spares no criticism as he reflects on that turbulent period of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's version, Tsipras selected the unorthodox academic Yanis Varoufakis to be his finance minister largely due to the latter's global profile along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, truthfully, more like a star and less of an economist,” recalled Tsipras.
Clashing Agendas
The former leader suggests that Varoufakis had his own agenda which included advancing Varoufakis's publications as well as experimenting with his own economic models using the nation rather than truly fighting for its financial survival.
He explained how those talks to stave off bankruptcy became “not just a way of achieving a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Talks
During volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line lay both Greece's future but also the punishing austerity policies required in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, including a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating conditions were subjected to a popular referendum, an action that threw the EU into a further crisis of identity.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option but to ignore the result then agree to a bailout package with foreign lenders which proved to be more severe.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the man who attracted publicity, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
When the minister outlined a contingency plan involving creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal that required complex and sensitive handling.”
He also wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
The account of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
