Within his freshly published autobiography, named Ithaki, the former prime minister Tsipras pulls no punches while he examines that chaotic period during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's recollections, Tsipras appointed that maverick economist Yanis Varoufakis as his finance minister largely due to his international reputation and Varoufakis's highly compelling abilities as a speaker.
“He was, in reality, more like a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how Varoufakis had his own motives that involved promoting Varoufakis's books and testing out his own theories on the nation rather than truly fighting for the country's economic stability.
He wrote that those talks to avoid insolvency were “not just a method to secure a better deal for the country. They became an experiment, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During tense negotiations, the country found itself perilously close to exiting the single currency area.
At stake lay both the country's future but also those punishing austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those punitive conditions were subjected to a popular referendum, a move that threw the EU into a further crisis of identity.
Even though the referendum was carried decisively by voters against austerity, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the covers of publications globally … it seemed he relished the spotlight.”
After the minister outlined a contingency plan involving establishing a secondary currency and distributing vouchers to pensioners, the leader knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts how his former ally had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
He further claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury along with shock in some quarters, while the former minister has so far maintained a deafening silence on the matter.
