Within his recently unveiled autobiography, called Ithaki, the ex- premier Tsipras spares no criticism as he revisits that turbulent period during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed the maverick economist Yanis Varoufakis as his treasury head primarily due to the latter's worldwide fame along with his very persuasive abilities as a public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief possessed his own motives that involved advancing Varoufakis's publications as well as testing out his theories on Greece rather than genuinely advocating its financial survival.
He explained how the negotiations to avoid bankruptcy became “not just a method to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of leaving the single currency area.
At stake was both the country's destiny and those severe austerity measures required in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as an urgent appeal to Russia to buy Greek bonds, went unanswered.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a public vote, an action that plunged Europe into further existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, Tsipras was forced to ignore the result and negotiate a rescue deal from creditors which proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, the leader knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras further claimed how his confrontational style left him more and more alone among peers, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
This retelling of events has provoked anger along with shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
