In a recently unveiled memoir, titled Ithaki, the ex- leader Tsipras spares no criticism while he examines that turbulent era of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, he selected that maverick academic Yanis Varoufakis to be his finance minister mainly because of his global profile along with Varoufakis's very persuasive skills when it came to speaker.
“He was, in reality, more of a star and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras claims how his finance chief had a personal agenda which involved promoting Varoufakis's publications as well as experimenting with his economic models on Greece instead of genuinely fighting for the country's financial survival.
He noted how the negotiations to prevent insolvency became “not just a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, Greece came perilously on the brink of leaving the eurozone.
At stake lay not only Greece's destiny but also those severe cutbacks required in return for financial aid from international creditors.
Failed Options
Efforts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, those harsh bailout terms were put to a popular referendum, an action that threw Europe into deeper existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be more severe.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the covers of publications globally … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts how his former ally had proved himself “unsuitable for a deal demanding intricate and delicate management.”
Tsipras further claimed that his aggressive style made him more and more alone with colleagues, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
