In a newly released memoir, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that turbulent era during Greece's debt drama.
A Controversial Appointment
According to Tsipras's version, he appointed the maverick academic Yanis Varoufakis to be his treasury head primarily due to the latter's global profile along with Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, in reality, more like a personality rather than an economist,” wrote the 51-year-old.
Clashing Priorities
Tsipras suggests that his finance chief possessed a personal agenda which involved promoting Varoufakis's publications and experimenting with his theories using Greece instead of genuinely advocating its economic stability.
Tsipras explained that those negotiations to stave off insolvency were “not just a way of achieving a better deal for the country. They became an experiment, a monumental opportunity to prove the truth of his ideas.”
Critical Talks
Amid tense negotiations, the country found itself dangerously close to leaving the single currency area.
At stake lay both the country's destiny and the punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a popular referendum, a move that plunged Europe into a further existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister was forced to reject its outcome and negotiate a bailout package from creditors that proved to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency and distributing vouchers to retirees, the leader said he realised that it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the book, Tsipras asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He further claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
