In a newly released autobiography, called Ithaki, the ex- prime minister Tsipras pulls no punches as he examines the chaotic period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's version, he selected the unorthodox economist Yanis Varoufakis as his treasury head primarily because of his worldwide fame and Varoufakis's highly compelling skills as a public orator.
“He was, in reality, more like a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief had his own motives which included promoting Varoufakis's publications as well as testing out his theories using Greece instead of genuinely fighting for the country's financial survival.
Tsipras wrote that the talks to stave off bankruptcy were “not just a method to secure a better deal for Greece. They were a test, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece came perilously on the brink of leaving the eurozone.
At stake was not only Greece's destiny and the harsh austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action which threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by voters against austerity, the prime minister was forced but to ignore the result and negotiate a bailout package with creditors which turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, Tsipras knew it was game over questioning him: “Are you serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for a deal that required complex and delicate management.”
He also claimed that Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hawks that were pushing for a Greek exit from the euro.
The account of history has been met with fury and stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
