In a recently unveiled memoir, named Ithaki, the former prime minister Tsipras spares no criticism while he examines that chaotic era during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, he selected the maverick economist Yanis Varoufakis to be his treasury head largely because of the latter's global profile and his very persuasive skills as a speaker.
“He was, in reality, more of a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader alleges that his finance chief had his own agenda that included advancing Varoufakis's publications and testing out his own economic models using Greece instead of truly fighting for the country's economic stability.
He wrote that those talks to stave off bankruptcy became “not just a way to secure improved terms for the country. They were an experiment, a monumental opportunity to prove the validity of his theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself dangerously on the brink of leaving the eurozone.
At stake lay not only Greece's future and those harsh austerity policies required in return for bailout funds by foreign lenders.
Failed Options
Attempts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, a move that threw Europe into deeper existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, the prime minister was forced to ignore the result and agree to a bailout package from creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a parallel currency and issuing coupons to pensioners, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hardliners who were advocating Grexit.
This account of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
