In a newly released memoir, titled Ithaki, the ex- leader Tsipras pulls no punches as he examines that turbulent period during Greece's debt drama.
An Unconventional Choice
As per Tsipras's account, he appointed that unorthodox academic Yanis Varoufakis to be his finance minister largely because of his global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, in reality, more like a star rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal motives that involved advancing Varoufakis's publications and experimenting with his economic models using the nation rather than genuinely advocating its economic stability.
Tsipras explained that the talks to stave off insolvency were “not only a method of achieving improved terms for the country. They became an experiment, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Talks
During tense negotiations, the country found itself dangerously on the brink of exiting the eurozone.
At stake was both Greece's destiny and the harsh austerity policies demanded in return for bailout funds by international creditors.
Failed Options
Attempts to find financing elsewhere, such as an urgent plea to the Kremlin to buy Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those excoriating conditions were put to a popular referendum, an action which plunged Europe into a deeper crisis of identity.
Although the vote was carried decisively by those who opposed the cuts, Tsipras was forced to ignore the result and negotiate a bailout package with creditors which proved to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a backup strategy that included establishing a secondary currency and distributing vouchers to pensioners, Tsipras knew that it was game over questioning him: “Is this for real?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate handling.”
He further wrote how his confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating Grexit.
The retelling of events has been met with fury and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
