Within his recently unveiled autobiography, called Ithaki, the former leader Alexis Tsipras spares no criticism as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras selected that maverick academic Yanis Varoufakis to be his treasury head largely due to the latter's worldwide fame and Varoufakis's highly compelling abilities as a public orator.
“He was, truthfully, more like a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims that his finance chief had a personal motives which included promoting Varoufakis's publications as well as testing out his own theories on Greece instead of genuinely fighting for the country's economic stability.
Tsipras wrote that the negotiations to avoid bankruptcy became “not only a way to secure a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
During rollercoaster negotiations, Greece found itself perilously on the brink of exiting the single currency area.
At stake was not only Greece's future and the severe cutbacks demanded in exchange for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those excoriating conditions were subjected to a public vote, a move that threw the EU into a deeper crisis of identity.
Even though the vote was carried resoundingly by voters against austerity, the prime minister was forced to reject its outcome and agree to a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After the minister outlined a contingency plan involving establishing a parallel currency and issuing vouchers to retirees, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He also claimed that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for Grexit.
The account of events has provoked fury and shock in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
