Within his newly released autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that turbulent era during Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's account, Tsipras appointed the unorthodox economist Yanis Varoufakis as his finance minister largely because of the latter's global profile along with his highly compelling abilities as a speaker.
“In reality, he was, actually, more of a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader suggests that his finance chief possessed his own agenda which involved advancing his publications and experimenting with his economic models using the nation rather than genuinely fighting for the country's financial survival.
He wrote that the negotiations to stave off insolvency became “not just a way to secure a better deal for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile discussions, the country came dangerously close to leaving the single currency area.
On the line lay both the country's future but also those harsh austerity policies required in return for rescue loans from foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, those excoriating conditions were subjected to a public vote, a move that plunged Europe into a further existential crisis.
Although the referendum was won decisively by voters against austerity, the prime minister was forced to reject its outcome then negotiate a bailout package from foreign lenders which proved to be more severe.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as distributing coupons to pensioners, the leader knew it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the memoir, the author asserts that Varoufakis demonstrated himself “unfit for an agreement demanding complex and delicate handling.”
He further wrote that his confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
