In a freshly published memoir, called Ithaki, the former leader Tsipras pulls no punches while he examines the turbulent era of Greece's debt drama.
An Unconventional Choice
In Tsipras's account, he appointed the maverick academic Yanis Varoufakis to be the finance minister largely because of his international reputation and Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras alleges how Varoufakis had a personal motives which included advancing Varoufakis's publications and experimenting with his own game theories on Greece instead of genuinely advocating its financial survival.
He noted that the negotiations to prevent insolvency were “not only a way to secure improved terms for the country. They became a test, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece came dangerously close to exiting the single currency area.
At stake was both Greece's future and the severe austerity measures required in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were put to a popular referendum, an action which threw the EU into further crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, Tsipras had little option to ignore the result then negotiate a rescue deal from creditors which turned out to be more severe.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who attracted media attention, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised that it was game over questioning him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes that his former ally had proved himself to be “unfit for a deal that required intricate and delicate management.”
He also wrote how his confrontational style left him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were pushing for a Greek exit from the euro.
The retelling of history has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
