In a freshly published autobiography, called Ithaki, the former premier Tsipras spares no criticism as he reflects on the turbulent era of Greece's financial crisis.
A Controversial Choice
In Tsipras's recollections, he appointed that unorthodox economist Yanis Varoufakis as the treasury head largely because of the latter's international reputation along with Varoufakis's highly compelling skills when it came to communicator.
“He was, in reality, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief had a personal agenda which involved advancing Varoufakis's publications and testing out his own economic models using Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote that the talks to prevent insolvency were “not just a method of achieving a better deal for the country. They were a test, a monumental opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake lay both the country's future but also the harsh austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, the excoriating conditions were subjected to a popular referendum, an action which threw the EU into a deeper existential crisis.
Even though the referendum was won decisively by those against austerity, Tsipras had little option but to ignore the result and negotiate a rescue deal from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan that included establishing a parallel currency as well as issuing coupons to pensioners, the leader knew that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, the author asserts how Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and delicate handling.”
He further wrote how his aggressive approach left him increasingly isolated among peers, endangered the country, and assisted hawks that were pushing for Grexit.
This account of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
