Within his freshly published personal account, called Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, he selected that unorthodox academic Yanis Varoufakis as his finance minister largely because of his global profile and Varoufakis's highly compelling skills as a public orator.
“He was, actually, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief possessed his own motives that included advancing his publications as well as testing out his own theories using the nation rather than genuinely advocating the country's financial survival.
He wrote how those discussions to stave off bankruptcy became “not only a method to secure a better deal for the country. They were an experiment, a monumental chance to prove the validity of Varoufakis's theories.”
Critical Talks
During tense discussions, the country found itself perilously close to exiting the single currency area.
At stake was both the country's destiny but also the severe austerity policies demanded in return for financial aid from international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, the punitive conditions were subjected to a public vote, a move that plunged Europe into a further crisis of identity.
Although the referendum was carried resoundingly by those who opposed austerity, Tsipras was forced to ignore the result then agree to a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked him: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote how Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
The account of events has been met with anger along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.
