Within his newly released memoir, named Ithaki, the former leader Tsipras pulls no punches as he examines that turbulent era of Greece's debt drama.
A Controversial Choice
As per the ex-PM's recollections, Tsipras selected that unorthodox academic Yanis Varoufakis as the finance minister primarily because of the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a speaker.
“He was, truthfully, more like a personality rather than an economist,” recalled Tsipras.
Conflicting Agendas
The former leader alleges how Varoufakis had a personal agenda which included promoting his publications as well as testing out his theories on Greece instead of truly advocating its economic stability.
Tsipras explained how the discussions to prevent bankruptcy were “not only a method to secure a better deal for Greece. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During tense discussions, Greece found itself dangerously close to leaving the single currency area.
At stake lay not only Greece's future and those severe austerity policies required in exchange for bailout funds from international creditors.
Failed Options
Efforts to secure financing from other sources, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, the harsh conditions were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result 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 quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, the leader said he realised it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for an agreement that required complex and delicate handling.”
Tsipras further wrote that Varoufakis's aggressive style made him more and more alone among peers, endangered the country, and helped hardliners who were pushing for Grexit.
This account of history has been met with anger along with shock in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
