In a freshly published autobiography, titled Ithaki, the ex- prime minister Tsipras pulls no punches while he reflects on that turbulent period during Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's recollections, he chose that maverick academic Yanis Varoufakis to be his treasury head mainly because of the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis had a personal motives that involved promoting his books as well as experimenting with his theories on Greece rather than truly advocating its economic stability.
He wrote how those negotiations to prevent insolvency were “not only a method to secure a better deal for the country. They were an experiment, a monumental chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
During tense discussions, the country found itself perilously close to exiting the single currency area.
On the line lay both the country's destiny and those punishing austerity policies demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were put to a public vote, a move that threw Europe into further existential crisis.
Even though the referendum was won decisively by those against the cuts, Tsipras was forced to ignore the result and agree to a rescue deal from creditors that proved to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
When the minister proposed a contingency plan involving creating a parallel currency as well as issuing coupons to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate handling.”
He also claimed how Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked anger and shock in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
