Within his recently unveiled memoir, called Ithaki, the former prime minister Tsipras spares no criticism as he revisits that chaotic period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras appointed the maverick academic Yanis Varoufakis to be the treasury head mainly due to the latter's international reputation and his highly compelling skills when it came to speaker.
“He was, truthfully, more of a celebrity and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis had a personal motives that included promoting Varoufakis's publications as well as testing out his own theories using Greece instead of truly advocating the country's financial survival.
Tsipras explained how the negotiations to avoid bankruptcy became “not only a way to secure a better deal for Greece. They became a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
Amid tense discussions, Greece found itself perilously close to leaving the single currency area.
On the line lay both Greece's future but also those punishing austerity policies demanded in exchange for rescue loans from international creditors.
Failed Options
Efforts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, an action that plunged the EU into a further existential crisis.
Although the referendum was won decisively by those against the cuts, Tsipras had little option but to ignore the result and negotiate a bailout package from creditors that proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally had proved himself to be “unfit for a deal that required intricate and sensitive management.”
He further wrote how Varoufakis's aggressive style left him more and more alone among peers, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
The account of history has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
