Within his newly released autobiography, titled Ithaki, the former prime minister Tsipras spares no criticism as he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, Tsipras selected that maverick academic Yanis Varoufakis as his treasury head largely because of the latter's global profile and Varoufakis's “extremely attractive” abilities when it came to communicator.
“He was, truthfully, more of a personality rather than an economist,” stated Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief had his own motives that included promoting his books and experimenting with his own economic models using Greece rather than genuinely advocating the country's financial survival.
Tsipras noted how the negotiations to prevent bankruptcy became “not only a way of achieving improved terms for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During volatile negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
At stake lay not only Greece's future but also those harsh austerity measures required in exchange for financial aid from international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those harsh bailout terms were put to a public vote, a move that plunged the EU into a deeper existential crisis.
Although the referendum was carried resoundingly by those against the cuts, Tsipras had little option but to ignore the result and agree to a bailout package with creditors that proved to be even harsher.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate management.”
He also wrote how his confrontational style made him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for Grexit.
The retelling of history has provoked anger along with shock in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
