Within his newly released personal account, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that chaotic period of Greece's debt drama.
An Unconventional Choice
According to Tsipras's version, Tsipras selected the unorthodox economist Yanis Varoufakis to be his treasury head largely due to his global profile along with Varoufakis's very persuasive abilities as a public orator.
“He was, actually, more of a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader claims how his finance chief possessed his own motives that included promoting his publications as well as testing out his economic models on the nation rather than truly advocating its financial survival.
He noted that the talks to avoid bankruptcy became “not only a method to secure a better deal for the country. They were a test, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid volatile discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay not only Greece's future and the punishing austerity policies required in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as a desperate appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, a move which plunged the EU into deeper existential crisis.
Although the referendum was won decisively by those who opposed the cuts, Tsipras had little option but to reject its outcome then agree to a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who drew media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to retirees, the leader knew it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the book, the author asserts how his former ally had proved himself to be “unsuitable for a deal that required intricate and sensitive management.”
Tsipras also claimed that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
This account of events has been met with fury and shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
