Within his newly released autobiography, named Ithaki, the ex- leader Tsipras spares no criticism as he revisits that turbulent era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, Tsipras selected that maverick economist Yanis Varoufakis as his treasury head largely due to the latter's international reputation and his very persuasive abilities as a public orator.
“He was, in reality, more like a star rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis possessed his own motives that included advancing his publications and experimenting with his game theories using Greece instead of genuinely advocating its economic stability.
He explained that the talks to prevent insolvency became “not just a method to secure improved terms for the country. They became an experiment, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously close to leaving the single currency area.
At stake was both Greece's destiny and the harsh austerity policies required in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were put to a popular referendum, an action which threw Europe into a further crisis of identity.
Even though the vote was carried resoundingly by voters who opposed austerity, the prime minister had little option but to ignore the result and negotiate a rescue deal with creditors which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, the leader knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required intricate and delicate management.”
He also wrote how his confrontational style made him increasingly isolated among peers, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
This account of events has provoked anger and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
