In a recently unveiled autobiography, named Ithaki, the former leader Tsipras pulls no punches while he revisits the turbulent period during Greece's debt drama.
An Unconventional Choice
In the ex-PM's account, Tsipras selected that maverick economist Yanis Varoufakis to be his treasury head primarily because of the latter's global profile and Varoufakis's very persuasive skills when it came to public orator.
“He was, actually, more of a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras alleges that Varoufakis had a personal agenda that involved advancing Varoufakis's books and testing out his game theories on Greece rather than truly advocating the country's financial survival.
Tsipras noted how those discussions to avoid insolvency became “not only a method to secure a better deal for Greece. They were an experiment, an historic chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously close to exiting the eurozone.
On the line lay both Greece's future but also the punishing austerity measures demanded in exchange for financial aid by international creditors.
Failed Alternatives
Efforts to find financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
In July 2015, the punitive conditions were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Even though the referendum was won decisively by voters who opposed austerity, the prime minister was forced to ignore the result then negotiate a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, the leader said he realised it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts that Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating a Greek exit from the euro.
This account of events has provoked anger along with shock in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
