Within his freshly published autobiography, named Ithaki, the former premier Tsipras pulls no punches while he reflects on that chaotic era during Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's version, he chose that maverick academic Yanis Varoufakis as his treasury head primarily because of the latter's worldwide fame and his very persuasive abilities when it came to speaker.
“He was, truthfully, more of a celebrity rather than an economist,” stated Tsipras.
Clashing Priorities
The former leader suggests how his finance chief had his own agenda which involved promoting Varoufakis's publications and experimenting with his own economic models on Greece instead of truly fighting for the country's financial survival.
He explained that the talks to avoid insolvency were “not just a way of achieving improved terms for Greece. They were a test, an historic chance to prove the validity of his theories.”
High-Stakes Talks
During tense negotiations, Greece found itself perilously on the brink of leaving the single currency area.
At stake was both Greece's future and the harsh austerity policies demanded in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, including an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into a deeper crisis of identity.
Even though the referendum was won decisively by those who opposed austerity, Tsipras had little option but to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted 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 establishing a secondary currency and issuing vouchers to pensioners, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and delicate management.”
He further claimed how Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and helped hardliners that were pushing for Grexit.
This retelling of history has been met with fury and shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
