In a recently unveiled autobiography, named Ithaki, the former premier Tsipras pulls no punches while he revisits the chaotic era during Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, Tsipras selected the maverick academic Yanis Varoufakis to be the treasury head mainly due to his worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, in reality, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
The former leader claims that his finance chief had a personal agenda which included promoting his books and testing out his game theories using the nation instead of genuinely fighting for its financial survival.
He noted how the negotiations to stave off insolvency were “not only a method to secure a better deal for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to leaving the single currency area.
On the line lay both the country's destiny but also those punishing austerity measures demanded in exchange for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, such as a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, those harsh conditions were subjected to a public vote, an action which threw Europe into a further existential crisis.
Although the vote was won resoundingly by those who opposed austerity, Tsipras was forced but to ignore the result and agree to a bailout package from creditors which proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and distributing vouchers to retirees, Tsipras knew that it was the end and asked him: “Is this for real?”
Enduring Criticism
Within the memoir, Tsipras concludes that Varoufakis had proved himself “unfit for a deal that required intricate and sensitive handling.”
He further wrote that his aggressive style made him increasingly isolated with colleagues, endangered the country, while helped hardliners that were pushing for Grexit.
This retelling of history has provoked fury along with shock in some quarters, while the former minister has kept a deafening silence regarding these claims.
