Within his freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's account, he selected the maverick academic Yanis Varoufakis to be his treasury head mainly due to his global profile and his “extremely attractive” skills when it came to speaker.
“In reality, he was, actually, more like a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges how his finance chief had his own motives which included advancing Varoufakis's publications as well as testing out his economic models using the nation rather than truly fighting for the country's financial survival.
He noted that the discussions to stave off insolvency became “not only a way of achieving improved terms for the country. They became a test, an historic chance to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid tense negotiations, Greece came dangerously close to exiting the single currency area.
On the line was both the country's destiny and the punishing austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating conditions were subjected to a public vote, an action which plunged Europe into deeper crisis of identity.
Even though the vote was won decisively by those who opposed austerity, the prime minister had little option to ignore the result then agree to a bailout package with creditors that turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving creating a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
He also claimed how his aggressive approach left him more and more alone among peers, endangered the country, while helped hardliners that were pushing for Grexit.
The account of history has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has kept a deafening silence regarding these claims.
