In a newly released memoir, titled Ithaki, the ex- premier Tsipras spares no criticism as he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's account, he chose the unorthodox economist Yanis Varoufakis as the treasury head largely due to his worldwide fame and his highly compelling skills as a speaker.
“He was, in reality, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief possessed a personal motives which included advancing his books as well as testing out his own economic models on the nation rather than genuinely advocating its financial survival.
He noted that those negotiations to avoid insolvency became “not only a way to secure a better deal for the country. They were a test, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake was both the country's future but also the punishing cutbacks required in return for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote and U-Turn
That summer, the punitive bailout terms were put to a popular referendum, a move that plunged the EU into a deeper crisis of identity.
Even though the referendum was carried resoundingly by those against the cuts, the prime minister was forced to ignore the result and agree to a rescue deal with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a backup strategy involving creating a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis had proved himself “unfit for a deal that required intricate and delicate handling.”
He further claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of events has been met with fury and stunned disbelief among certain groups, while the former minister has kept a conspicuous quiet on the matter.
