In a freshly published memoir, named Ithaki, the former prime minister Tsipras pulls no punches while he examines the chaotic era during Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's version, Tsipras selected that unorthodox academic Yanis Varoufakis as the finance minister primarily due to the latter's global profile and Varoufakis's “extremely attractive” abilities as a communicator.
“He was, actually, more like a celebrity and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges that his finance chief had a personal motives that included promoting Varoufakis's books as well as experimenting with his own theories on Greece rather than truly fighting for its financial survival.
He noted how those negotiations to prevent bankruptcy became “not only a method to secure improved terms for the country. They were a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece came perilously close to leaving the eurozone.
At stake lay both Greece's future but also those severe austerity policies demanded in return for rescue loans from international creditors.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were put to a public vote, a move that threw Europe into a deeper existential crisis.
Although the referendum was carried resoundingly by voters against austerity, Tsipras had little option but to reject its outcome then agree to a rescue deal with creditors which proved to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who drew media attention, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When the minister proposed a contingency plan involving establishing a parallel currency and distributing coupons to retirees, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis had proved himself “unfit for a deal that required intricate and sensitive handling.”
He also wrote how his confrontational style left him more and more alone among peers, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
