In a freshly published autobiography, called Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the turbulent era during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's account, Tsipras selected that maverick academic Yanis Varoufakis to be the treasury head primarily because of his international reputation and his highly compelling skills when it came to communicator.
“He was, truthfully, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that his finance chief possessed his own agenda which included promoting his publications and testing out his own economic models using the nation rather than truly advocating the country's economic stability.
He noted how the negotiations to prevent insolvency were “not just a way of achieving improved terms for the country. They were an experiment, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
During volatile discussions, Greece found itself dangerously close to exiting the single currency area.
On the line lay both the country's future and those punishing austerity policies required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, an action which plunged the EU into a deeper crisis of identity.
Even though the vote was won decisively by those against austerity, the prime minister had little option but to reject its outcome and agree to a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as distributing coupons to pensioners, Tsipras knew it was the end and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how his former ally had proved himself “unsuitable for an agreement demanding complex and delicate handling.”
Tsipras further wrote that Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were advocating Grexit.
The account of events has provoked fury and shock in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
