In a newly released memoir, called Ithaki, the former premier Alexis Tsipras spares no criticism while he examines that turbulent period during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he chose the unorthodox economist Yanis Varoufakis to be his treasury head primarily because of his worldwide fame and his very persuasive abilities when it came to public orator.
“He was, truthfully, more of a star and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief had his own agenda that included promoting his books as well as testing out his own theories using Greece instead of genuinely advocating its economic stability.
He wrote how the negotiations to stave off bankruptcy were “not just a way of achieving improved terms for the country. They became a test, a monumental chance to prove the validity of his theories.”
High-Stakes Negotiations
During volatile discussions, the country found itself perilously close to exiting the eurozone.
On the line was not only Greece's destiny and those punishing austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, those harsh bailout terms were put to a public vote, an action that plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by voters against austerity, the prime minister was forced to ignore the result then agree to a bailout package with foreign lenders which turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who drew publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When the minister proposed a contingency plan that included establishing a parallel currency and issuing coupons to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, the author concludes that his former ally demonstrated himself “unfit for an agreement that required complex and sensitive handling.”
He further wrote that Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, while assisted hardliners who were advocating Grexit.
This account of events has provoked anger along with shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
