In a newly released autobiography, named Ithaki, the former premier Tsipras pulls no punches while he revisits that turbulent era of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, Tsipras appointed that maverick academic Yanis Varoufakis as his treasury head primarily because of his international reputation along with Varoufakis's very persuasive skills as a public orator.
“He was, in reality, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief possessed a personal agenda which involved advancing Varoufakis's books as well as experimenting with his economic models using the nation rather than truly advocating its economic stability.
Tsipras explained how the talks to stave off insolvency were “not only a method of achieving a better deal for the country. They were an experiment, a monumental opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
During volatile discussions, the country came dangerously close to leaving the single currency area.
At stake lay both the country's future but also those harsh austerity policies demanded in return for rescue loans from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, an action which plunged Europe into further existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras was forced but to ignore the result then agree to a rescue deal from creditors which proved to be more severe.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who drew publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras asserts that his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
Tsipras also wrote how Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked fury and shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
