In a recently unveiled autobiography, named Ithaki, the ex- prime minister Tsipras does not hold back as he revisits that turbulent period during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's recollections, he chose the maverick economist Yanis Varoufakis as the treasury head primarily due to the latter's worldwide fame and Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, actually, more like a personality and less of an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras claims that Varoufakis had a personal motives that included advancing Varoufakis's books and testing out his own economic models on Greece instead of truly fighting for its economic stability.
He explained that those discussions to avoid bankruptcy were “not only a method to secure a better deal for the country. They became an experiment, an historic chance to demonstrate the truth of his theories.”
High-Stakes Talks
Amid volatile negotiations, Greece came dangerously on the brink of exiting the single currency area.
On the line was both Greece's future but also the harsh austerity measures demanded in exchange for bailout funds from international creditors.
Failed Options
Attempts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were put to a popular referendum, a move that threw Europe into a further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to ignore the result and agree to a rescue deal with creditors which turned out to be tougher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving establishing a parallel currency and distributing vouchers to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras asserts that Varoufakis had proved himself “unsuitable for an agreement that required intricate and delicate management.”
He also wrote how Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
