In a newly released memoir, titled Ithaki, the former prime minister Tsipras pulls no punches as he examines that chaotic period during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's account, he appointed the maverick economist Yanis Varoufakis as his treasury head largely due to the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Conflicting Priorities
The former leader claims how Varoufakis had his own motives which included advancing his books and testing out his game theories on Greece instead of genuinely advocating the country's financial survival.
He explained that those talks to prevent bankruptcy became “not only a method of achieving improved terms for the country. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself perilously on the brink of leaving the eurozone.
On the line was not only Greece's destiny but also the harsh austerity measures required in exchange for financial aid by foreign lenders.
Failed Options
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the punitive conditions were subjected to a popular referendum, a move that plunged Europe into further crisis of identity.
Even though the vote was won decisively by those against the cuts, the prime minister had little option to reject its outcome and negotiate a rescue deal from creditors which turned out to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy that included creating a secondary currency and distributing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal that required complex and delicate handling.”
He further claimed how Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
This account of history has provoked fury and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
