Within his recently unveiled personal account, called Ithaki, the ex- leader Tsipras pulls no punches as he reflects on the turbulent period of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, he selected the unorthodox economist Yanis Varoufakis to be the treasury head mainly due to the latter's global profile and his very persuasive abilities as a communicator.
“In reality, he was, truthfully, more like a star rather than an economist,” stated Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had his own motives which included advancing Varoufakis's publications and testing out his theories using Greece instead of genuinely advocating the country's economic stability.
Tsipras wrote how the negotiations to prevent bankruptcy were “not only a way of achieving improved terms for the country. They were a test, a monumental chance to prove the truth of his economic theories.”
Critical Negotiations
Amid tense negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line was both Greece's destiny and the harsh austerity measures demanded in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and U-Turn
That summer, those excoriating conditions were subjected to a public vote, a move which threw Europe into deeper existential crisis.
Although the referendum was won decisively by voters against austerity, the prime minister had little option to ignore the result then negotiate a bailout package with creditors which turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan involving creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author asserts how Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate management.”
Tsipras further wrote that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
The account of history has been met with fury and shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
