In a newly released autobiography, named Ithaki, the former prime minister Tsipras pulls no punches while he reflects on the turbulent period during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, Tsipras selected that maverick academic Yanis Varoufakis as his treasury head largely because of his international reputation and his very persuasive abilities when it came to public orator.
“In reality, he was, truthfully, more like a star rather than an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief had a personal agenda which included advancing Varoufakis's publications and experimenting with his own economic models using Greece instead of genuinely advocating its financial survival.
He noted that the discussions to prevent bankruptcy became “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously on the brink of leaving the eurozone.
At stake lay both Greece's future but also the severe cutbacks required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the punitive conditions were put to a public vote, a move which plunged the EU into a deeper existential crisis.
Although the vote was won decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan involving creating a secondary currency as well as distributing vouchers to pensioners, the leader knew it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself “unfit for an agreement demanding intricate and sensitive handling.”
He further claimed that Varoufakis's confrontational style left him more and more alone among peers, endangered the country, while helped hawks who were advocating Grexit.
The account of events has been met with anger along with shock among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
