In a freshly published memoir, named Ithaki, the former premier Alexis Tsipras does not hold back as he examines that chaotic period of Greece's financial crisis.
A Controversial Appointment
In Tsipras's recollections, Tsipras chose the maverick economist Yanis Varoufakis as the finance minister largely because of his worldwide fame and Varoufakis's highly compelling skills when it came to speaker.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras alleges that Varoufakis had a personal agenda that included advancing Varoufakis's books as well as experimenting with his own theories on the nation rather than truly advocating the country's financial survival.
Tsipras explained how those talks to avoid bankruptcy were “not only a method to secure a better deal for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
Amid rollercoaster discussions, the country came dangerously close to exiting the single currency area.
On the line was both the country's future but also the severe cutbacks required in return for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the punitive bailout terms were subjected to a public vote, a move which plunged the EU into further existential crisis.
Although the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to ignore the result and agree to a bailout package with creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and issuing vouchers to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, the author asserts how his former ally demonstrated himself “unfit for an agreement demanding complex and delicate handling.”
He further wrote how Varoufakis's confrontational approach made him more and more alone among peers, endangered the country, while assisted hawks that were advocating Grexit.
The retelling of events has provoked fury along with shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.