In a freshly published autobiography, named Ithaki, the ex- premier Tsipras does not hold back as he reflects on that chaotic era during Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, he appointed that maverick academic Yanis Varoufakis as his treasury head mainly due to the latter's worldwide fame and his “extremely attractive” abilities as a public orator.
“He was, truthfully, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed his own agenda that involved advancing his publications and experimenting with his theories on Greece instead of truly advocating the country's economic stability.
Tsipras wrote how those negotiations to avoid insolvency were “not just a way of achieving a better deal for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, the country came perilously close to exiting the eurozone.
On the line lay not only Greece's destiny but also those harsh austerity policies demanded in return for bailout funds from international creditors.
Failed Alternatives
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive conditions were subjected to a public vote, a move which threw Europe into deeper existential crisis.
Although the vote was carried decisively by those against the cuts, the prime minister had little option to reject its outcome then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who drew publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency and distributing vouchers to retirees, Tsipras said he realised that it was game over questioning him: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis had proved himself to be “unfit for a deal that required intricate and sensitive handling.”
Tsipras further wrote that Varoufakis's confrontational approach made him more and more alone among peers, put Greece at risk, and assisted hardliners who were advocating Grexit.
This retelling of history has been met with anger and shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
