In a newly released memoir, titled Ithaki, the former premier Tsipras does not hold back as he revisits that turbulent era of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras chose that unorthodox economist Yanis Varoufakis to be his treasury head mainly due to the latter's worldwide fame and his “extremely attractive” skills when it came to public orator.
“He was, actually, more like a star rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how Varoufakis had his own agenda which involved promoting his publications as well as testing out his own economic models using the nation rather than genuinely advocating its financial survival.
Tsipras wrote how the talks to avoid insolvency were “not just a way of achieving improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself perilously on the brink of leaving the eurozone.
At stake was not only the country's destiny and those severe cutbacks required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those harsh conditions were subjected to a popular referendum, an action that threw the EU into deeper crisis of identity.
Even though the vote was carried decisively by voters against austerity, Tsipras was forced to ignore the result and agree to a rescue deal from foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who drew publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing coupons to pensioners, Tsipras knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and sensitive management.”
He also claimed that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
This account of events has provoked fury and shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
