In a newly released memoir, titled Ithaki, the ex- premier Tsipras spares no criticism while he examines that chaotic era during Greece's financial crisis.
A Controversial Choice
In Tsipras's version, he appointed the unorthodox academic Yanis Varoufakis as the finance minister primarily due to the latter's worldwide fame and Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, in reality, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that his finance chief had a personal motives that involved advancing Varoufakis's publications and experimenting with his game theories on Greece instead of truly fighting for the country's financial survival.
Tsipras wrote that those discussions to avoid insolvency became “not just a way to secure improved terms for Greece. They were an experiment, an historic chance to prove the validity of his economic theories.”
Critical Talks
During tense discussions, Greece came dangerously close to exiting the single currency area.
At stake was not only the country's future and the harsh cutbacks required in exchange for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, a move which plunged the EU into a further existential crisis.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister was forced but to ignore the result and agree to a bailout package with foreign lenders which turned out to be more severe.
Final Straw
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how his former ally had proved himself “unfit for a deal that required complex and sensitive handling.”
He also claimed how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
The account of history has been met with anger and shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
