Within his newly released autobiography, called Ithaki, the former premier Tsipras pulls no punches while he revisits that chaotic era during Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's account, he appointed that unorthodox economist Yanis Varoufakis to be the treasury head largely due to his global profile and Varoufakis's “extremely attractive” abilities when it came to communicator.
“He was, actually, more of a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief possessed his own motives which involved advancing his publications as well as testing out his theories using the nation rather than genuinely fighting for its financial survival.
He explained how the talks to avoid bankruptcy became “not just a method of achieving a better deal for the country. They became an experiment, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously close to leaving the single currency area.
On the line was both Greece's destiny but also the harsh austerity policies demanded in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were put to a popular referendum, a move that threw Europe into further existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal with creditors that proved to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy involving creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Are you serious?”
Lasting Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate management.”
Tsipras further wrote that his confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hawks who were advocating Grexit.
The retelling of history has been met with fury along with shock among certain groups, while the former minister has so far kept a conspicuous quiet on the matter.
