In a newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Choice
In Tsipras's recollections, he appointed the unorthodox academic Yanis Varoufakis to be the treasury head mainly because of the latter's global profile and Varoufakis's highly compelling abilities as a speaker.
“He was, in reality, more of a personality and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed a personal motives that included promoting his books and testing out his theories on the nation instead of genuinely fighting for its financial survival.
He noted that the negotiations to prevent insolvency were “not only a method of achieving a better deal for the country. They were a test, a monumental opportunity to demonstrate the truth of his ideas.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously close to exiting the single currency area.
On the line lay not only the country's future and the severe austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, such as a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, an action that threw Europe into deeper existential crisis.
Although the referendum was won decisively by voters who opposed the cuts, Tsipras had little option to reject its outcome and agree to a bailout package from creditors that turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the covers of publications the world over … it seemed he relished his new role.”
After the minister proposed a backup strategy that included creating a parallel currency and distributing vouchers to pensioners, Tsipras knew it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, the author concludes that Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and delicate management.”
Tsipras further wrote how his aggressive approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners that were advocating Grexit.
The account of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
