Within his recently unveiled personal account, called Ithaki, the ex- leader Alexis Tsipras spares no criticism as he reflects on the turbulent period during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, he selected the unorthodox academic Yanis Varoufakis to be the finance minister largely due to his global profile along with his very persuasive abilities as a communicator.
“He was, truthfully, more of a star rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how his finance chief had his own agenda that included promoting Varoufakis's publications and experimenting with his own game theories using Greece rather than genuinely fighting for its economic stability.
He wrote that those negotiations to avoid insolvency became “not just a method of achieving improved terms for the country. They became an experiment, a monumental chance to prove the truth of his economic theories.”
High-Stakes Talks
During tense negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was both the country's future but also the punishing cutbacks required in exchange for rescue loans from foreign lenders.
Failed Options
Efforts to find financing from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, a move that threw Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against austerity, Tsipras was forced to ignore the result then agree to a rescue deal with creditors which turned out to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who drew media attention, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and sensitive handling.”
He further claimed that his aggressive style left him more and more alone with colleagues, put Greece at risk, and helped hardliners who were advocating Grexit.
This retelling of history has provoked anger along with stunned disbelief among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.
