In a newly released personal account, called Ithaki, the former prime minister Tsipras spares no criticism as he examines that chaotic period of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he selected that maverick economist Yanis Varoufakis to be the treasury head mainly because of the latter's global profile and Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more like a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims that his finance chief possessed a personal motives that involved advancing Varoufakis's publications as well as testing out his game theories on Greece rather than truly fighting for the country's financial survival.
He explained that the negotiations to stave off insolvency became “not just a way of achieving a better deal for Greece. They were an experiment, a monumental chance to prove the validity of his theories.”
Critical Talks
During volatile discussions, the country came perilously on the brink of leaving the single currency area.
On the line lay both the country's destiny and those punishing austerity measures demanded in return for financial aid from international creditors.
Failed Alternatives
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote and U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Although the vote was won resoundingly by those who opposed austerity, the prime minister was forced but to reject its outcome then negotiate a rescue deal from creditors that turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who drew publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes how his former ally demonstrated himself “unfit for a deal that required intricate and sensitive handling.”
He further wrote how his aggressive approach made him increasingly isolated among peers, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has provoked anger and stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.
