In a freshly published personal account, called Ithaki, the ex- premier Tsipras pulls no punches while he revisits the turbulent period of Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's version, Tsipras appointed the maverick academic Yanis Varoufakis to be his finance minister primarily because of his international reputation along with his “extremely attractive” abilities as a communicator.
“He was, actually, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief had a personal motives which included advancing his books and experimenting with his own theories using Greece rather than genuinely fighting for the country's economic stability.
He wrote how those negotiations to stave off insolvency were “not just a way of achieving a better deal for Greece. They became an experiment, an historic chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, the country found itself dangerously on the brink of leaving the eurozone.
At stake lay both Greece's future but also the severe cutbacks required in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, the harsh bailout terms were put to a public vote, an action which plunged Europe into deeper crisis of identity.
Although the vote was won resoundingly by those against austerity, Tsipras had little option to ignore the result and negotiate a rescue deal with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included creating a parallel currency and issuing vouchers to retirees, the leader said he realised it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes how his former ally demonstrated himself “unfit for an agreement that required intricate and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of history has provoked anger along with shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
