In a newly released personal account, titled Ithaki, the former prime minister Tsipras does not hold back as he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Choice
In the ex-PM's version, Tsipras appointed the maverick economist Yanis Varoufakis as his treasury head mainly because of the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a speaker.
“He was, actually, more like a star rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests how his finance chief possessed his own motives which included advancing his publications and testing out his own economic models using Greece instead of truly fighting for the country's financial survival.
Tsipras noted that those talks to avoid bankruptcy were “not only a way of achieving a better deal for the country. They became a test, an historic chance to demonstrate the validity of his theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously on the brink of leaving the eurozone.
On the line lay both Greece's future but also the punishing cutbacks required in return for financial aid by international creditors.
Unsuccessful Options
Efforts to secure funds from other sources, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, an action that plunged Europe into further crisis of identity.
Even though the vote was carried resoundingly by voters against austerity, the prime minister was forced to ignore the result and negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan that included creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive handling.”
He also claimed how his confrontational style made him more and more alone with colleagues, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with anger along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
