In a newly released memoir, called Ithaki, the former prime minister Tsipras does not hold back as he examines the chaotic period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, Tsipras selected that unorthodox economist Yanis Varoufakis to be the treasury head mainly due to the latter's worldwide fame along with Varoufakis's very persuasive abilities as a communicator.
“He was, in reality, more like a celebrity rather than an economist,” stated Tsipras.
Clashing Priorities
Tsipras alleges that Varoufakis had a personal motives which included promoting his publications as well as testing out his theories using Greece instead of truly fighting for the country's financial survival.
He wrote how those negotiations to stave off bankruptcy were “not just a method of achieving improved terms for the country. They became a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
Amid rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.
At stake lay both the country's future and the severe austerity policies required in exchange for financial aid from international creditors.
Failed Options
Attempts to secure funds from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the punitive conditions were subjected to a popular referendum, an action that threw Europe into deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to ignore the result then negotiate a rescue deal with creditors which turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, the author asserts how Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive management.”
He also wrote that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
