In a recently unveiled autobiography, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that chaotic period during Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, Tsipras appointed the maverick academic Yanis Varoufakis as his treasury head largely because of the latter's global profile along with Varoufakis's very persuasive abilities as a speaker.
“He was, in reality, more of a star and less of an economic expert,” stated Tsipras.
Conflicting Priorities
The former leader alleges that his finance chief had his own agenda that included advancing Varoufakis's books as well as testing out his own economic models using Greece rather than truly advocating its financial survival.
Tsipras explained that those discussions to prevent bankruptcy were “not only a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line lay both Greece's destiny but also the punishing austerity measures required in exchange for rescue loans by foreign lenders.
Failed Options
Attempts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, those punitive conditions were put to a public vote, an action which plunged Europe into a deeper existential crisis.
Although the vote was won decisively by those who opposed the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency and distributing vouchers to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
He further claimed that Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
This retelling of history has been met with anger along with shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
