Within his freshly published memoir, titled Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he reflects on that turbulent era during Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's recollections, he appointed the maverick economist Yanis Varoufakis to be his finance minister primarily because of his worldwide fame and his “extremely attractive” skills as a speaker.
“In reality, he was, actually, more of a personality and less of an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader alleges how Varoufakis possessed a personal motives which involved promoting his books as well as testing out his theories using Greece rather than truly fighting for its economic stability.
He noted that the negotiations to avoid bankruptcy became “not just a method of achieving improved terms for the country. They became an experiment, a monumental opportunity to prove the truth of his theories.”
Critical Negotiations
During rollercoaster negotiations, Greece came dangerously on the brink of exiting the eurozone.
At stake was both the country's future but also those harsh austerity measures demanded in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, those punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into a deeper existential crisis.
Even though the referendum was won decisively by those who opposed austerity, the prime minister was forced to reject its outcome and negotiate a bailout package from foreign lenders that proved to be tougher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes that Varoufakis had proved himself “unfit for a deal demanding intricate and sensitive management.”
Tsipras also claimed that Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
This account of history has provoked fury and shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
