In a newly released personal account, named Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he revisits the chaotic period of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, Tsipras selected the maverick academic Yanis Varoufakis as the finance minister primarily due to his global profile and Varoufakis's highly compelling skills as a public orator.
“He was, truthfully, more like a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges that Varoufakis possessed his own agenda that involved promoting Varoufakis's books and experimenting with his own economic models using Greece rather than genuinely advocating its financial survival.
He explained that the negotiations to prevent bankruptcy were “not just a method to secure a better deal for the country. They were an experiment, an historic opportunity to prove the truth of his ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece came dangerously close to exiting the single currency area.
At stake lay not only the country's destiny and those punishing austerity measures demanded in exchange for rescue loans by international creditors.
Failed Options
Attempts to secure funds from other sources, including an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action that threw Europe into deeper existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced but to reject its outcome and negotiate a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who attracted media attention, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy that included creating a parallel currency and distributing vouchers to pensioners, the leader said he realised it was game over and asked him: “Is this for real?”
Enduring Criticism
In the book, the author concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras further wrote that Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, while assisted hawks that were advocating Grexit.
The account of events has provoked fury and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
