Within his freshly published personal account, named Ithaki, the former prime minister Tsipras pulls no punches as he reflects on that turbulent period of Greece's financial crisis.
A Controversial Choice
In Tsipras's recollections, Tsipras appointed the maverick economist Yanis Varoufakis as his finance minister largely due to his international reputation and his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more of a star and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief had his own motives which involved advancing Varoufakis's books and testing out his economic models using the nation instead of genuinely fighting for the country's financial survival.
He noted that the discussions to prevent bankruptcy became “not just a way to secure improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile discussions, the country found itself perilously on the brink of leaving the eurozone.
On the line was not only the country's destiny but also those punishing cutbacks required in exchange for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were put to a public vote, an action which threw the EU into further crisis of identity.
Even though the referendum was carried resoundingly by those against austerity, Tsipras had little option but to reject its outcome and agree to a bailout package from foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was game over questioning him: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts that his former ally demonstrated himself “unfit for a deal that required complex and sensitive management.”
Tsipras further wrote that his aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
