Within his recently unveiled memoir, called Ithaki, the former premier Tsipras pulls no punches as he examines the chaotic period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected that maverick academic Yanis Varoufakis to be his treasury head largely because of his global profile along with his “extremely attractive” skills as a communicator.
“He was, in reality, more like a star rather than an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief had a personal motives which included promoting his publications and testing out his game theories using Greece rather than truly fighting for the country's financial survival.
Tsipras wrote how the negotiations to prevent bankruptcy were “not only a method to secure a better deal for Greece. They were a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
Critical Talks
During rollercoaster negotiations, the country found itself dangerously close to exiting the single currency area.
On the line was not only the country's future but also those punishing austerity measures required in return for rescue loans from international creditors.
Failed Alternatives
Efforts to find funds elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were put to a public vote, a move that threw Europe into deeper crisis of identity.
Even though the vote was won decisively by those against austerity, the prime minister was forced to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate handling.”
He further wrote that Varoufakis's aggressive style left him more and more alone among peers, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
