In a recently unveiled memoir, named Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he chose that maverick academic Yanis Varoufakis to be his finance minister mainly because of the latter's global profile along with his very persuasive skills as a speaker.
“He was, actually, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges how Varoufakis had his own agenda that included advancing his books and testing out his theories using Greece rather than genuinely fighting for its economic stability.
He noted how the discussions to avoid bankruptcy were “not just a way to secure improved terms for the country. They were a test, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, Greece came dangerously close to exiting the single currency area.
At stake was not only the country's future and the harsh austerity measures required in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, the excoriating conditions were subjected to a public vote, a move that threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by voters who opposed austerity, the prime minister was forced but to ignore the result and agree to a bailout package from foreign lenders which proved to be even harsher.
Final Straw
Tsipras claimed 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 was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving creating a parallel currency and distributing vouchers to pensioners, the leader knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author asserts that Varoufakis demonstrated himself to be “unfit for a deal that required intricate and sensitive handling.”
He further claimed that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were advocating Grexit.
This account of events has been met with anger along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
