Within his recently unveiled memoir, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back while he revisits that chaotic era of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, he appointed that maverick academic Yanis Varoufakis to be his finance minister largely because of his worldwide fame and his very persuasive abilities as a communicator.
“He was, in reality, more of a star and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras claims how his finance chief possessed his own motives that included promoting his publications and experimenting with his own game theories using Greece instead of genuinely advocating the country's financial survival.
Tsipras explained that those talks to prevent insolvency became “not only a method to secure improved terms for the country. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece came dangerously on the brink of leaving the eurozone.
On the line lay not only Greece's destiny and those punishing cutbacks demanded in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those harsh bailout terms were put to a public vote, a move that threw the EU into deeper existential crisis.
Even though the referendum was carried decisively by voters against the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders that proved to be tougher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to retirees, the leader said he realised it was the end questioning him: “Are you serious?”
Lasting Criticism
In the book, the author asserts that his former ally demonstrated himself to be “unfit for a deal demanding intricate and sensitive handling.”
He also wrote that Varoufakis's confrontational style left him more and more alone among peers, put Greece at risk, and assisted hardliners that were advocating a Greek exit from the euro.
This account of events has been met with anger along with shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
