In a recently unveiled autobiography, titled Ithaki, the former prime minister Tsipras pulls no punches while he revisits that chaotic era during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he selected the maverick academic Yanis Varoufakis to be the treasury head primarily because of the latter's worldwide fame along with Varoufakis's very persuasive skills as a communicator.
“He was, in reality, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief had his own agenda that included promoting his books as well as testing out his own theories on Greece instead of truly fighting for its economic stability.
Tsipras explained that the talks to avoid insolvency became “not just a method to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
On the line was both the country's destiny but also those severe austerity policies required in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, a move that plunged Europe into further crisis of identity.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras had little option to ignore the result and negotiate a bailout package with foreign lenders which turned out to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a backup strategy that included creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras concludes how his former ally demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
He further claimed that his aggressive style left him increasingly isolated among peers, endangered the country, while assisted hawks that were advocating a Greek exit from the euro.
The retelling of history has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
