Within his recently unveiled memoir, named Ithaki, the former leader Tsipras does not hold back while he revisits that turbulent era of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, he appointed that maverick academic Yanis Varoufakis to be the treasury head mainly due to the latter's international reputation and Varoufakis's “extremely attractive” skills as a speaker.
“He was, actually, more like a personality rather than an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras alleges how his finance chief possessed his own agenda that included promoting Varoufakis's publications and testing out his economic models on Greece rather than genuinely fighting for its financial survival.
Tsipras explained how those negotiations to avoid bankruptcy were “not just a method to secure improved terms for the country. They were a test, an historic opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
During tense discussions, the country came dangerously on the brink of leaving the single currency area.
At stake lay not only the country's destiny but also those harsh cutbacks required in return for financial aid from international creditors.
Failed Options
Efforts to find funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
In July 2015, those harsh bailout terms were put to a popular referendum, an action that threw the EU into a deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, Tsipras was forced but to reject its outcome then negotiate a bailout package from creditors which proved to be more severe.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew media attention, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author asserts that his former ally had proved himself to be “unsuitable for an agreement that required intricate and delicate management.”
He further wrote that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
This retelling of events has provoked fury and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
