Within his freshly published autobiography, named Ithaki, the ex- prime minister Tsipras does not hold back as he revisits that chaotic era during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, Tsipras chose that maverick economist Yanis Varoufakis as his treasury head mainly due to his global profile and his very persuasive abilities as a communicator.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras alleges that his finance chief had a personal motives which involved advancing his books and experimenting with his own economic models using Greece instead of truly advocating its financial survival.
He noted that the negotiations to prevent insolvency were “not just a way to secure improved terms for the country. They became an experiment, a monumental chance to prove the validity of his theories.”
High-Stakes Talks
Amid volatile discussions, the country came perilously on the brink of leaving the single currency area.
On the line lay not only the country's future but also the severe austerity measures required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the excoriating conditions were subjected to a public vote, an action that threw the EU into deeper crisis of identity.
Even though the vote was won resoundingly by those against the cuts, the prime minister had little option to ignore the result and negotiate a rescue deal with creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, Tsipras asserts how his former ally had proved himself “unsuitable for a deal that required complex and delicate handling.”
He further wrote that Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and shock in some quarters, while the former minister has so far kept a conspicuous quiet regarding these claims.
