In a recently unveiled memoir, called Ithaki, the former premier Tsipras spares no criticism as he revisits the turbulent era during Greece's financial crisis.
A Controversial Choice
In Tsipras's account, Tsipras selected that maverick academic Yanis Varoufakis to be his treasury head primarily due to the latter's international reputation and Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader claims how his finance chief possessed his own agenda which involved advancing Varoufakis's books as well as testing out his own economic models using Greece rather than truly fighting for its financial survival.
Tsipras noted that the discussions to prevent bankruptcy were “not just a way to secure a better deal for the country. They became an experiment, a monumental chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself perilously close to exiting the single currency area.
At stake lay both Greece's future but also those punishing austerity policies required in exchange for financial aid by international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, such as a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were put to a popular referendum, an action that threw the EU into deeper crisis of identity.
Although the vote was carried decisively by voters against the cuts, the prime minister was forced but to ignore the result then agree to a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, the author asserts how his former ally had proved himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras further wrote that Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has provoked fury and stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
