In a freshly published autobiography, named Ithaki, the former premier Alexis Tsipras spares no criticism as he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's account, Tsipras chose that maverick economist Yanis Varoufakis to be his treasury head mainly because of the latter's international reputation along with his “extremely attractive” skills as a public orator.
“In reality, he was, in reality, more of a star rather than an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief had a personal agenda which included advancing his publications as well as testing out his economic models on the nation instead of truly fighting for the country's financial survival.
Tsipras explained how those discussions to prevent bankruptcy became “not just a way of achieving a better deal for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, Greece came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny and those punishing austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a popular referendum, a move which threw the EU into further existential crisis.
Although the vote was won resoundingly by those who opposed austerity, the prime minister was forced to ignore the result then agree to a bailout package from creditors which proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the covers of publications the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has provoked anger and shock in some quarters, while the former minister has maintained a conspicuous quiet on the matter.
